In a world of monthly subscriptions and household bills set to autopay, the idea of moving all those recurring charges to a different credit card can be headache-inducing.
Credit card updater services generally ensure that when an issuer sends you a new card to replace one that is expiring, the account information you have on file with merchants will automatically update to match that new card. But there’s no quick and easy way to move recurring charges from one card to another. That’s a problem. If you forget one, you might be charged a late fee. Or worse, you might have important services cut off.
There are a variety of reasons you might want to switch the card associated with automated payments. Maybe the original card was compromised. Maybe that card is being discontinued entirely, or is moving from one issuing bank to another (which is effectively the same as being discontinued). Here's how you can deal.
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Start by reviewing your statements
Before you can move your recurring payments, you have to know what they are. If you use a budgeting app that syncs with your accounts online and imports all your credit card transactions, this will be easier. If you don't, then you'll have to look through a year's worth of statements. If you haven't been saving them in paper or digital form, you can usually download them through your credit card account's web portal or app.
Start by going through the past several months' transactions and identifying those that come up regularly. But recognize that recurring payments aren't necessarily monthly. Annual "set-it-and-forget-it" payments can easily disappear in a sea of one-time charges. These include subscriptions such as Amazon Prime, which auto-renews once a year, as well as media and software subscriptions; membership fees or dues; insurance plans; and contracts such as for home security services or storage facilities. So make another pass through your statements, this time keeping an eye out for these once-a-year charges.
If you’ve saved your card as a preferred payment method on an app or website — say, Uber, Amazon or iTunes — update your payment preferences there, too. These aren’t exactly “recurring charges,” but if you don’t change them, your card will be declined later on.
Make the switch
Once you've got your list, it's time to log into all the accounts where those bills live — Netflix, Amazon, the power company, your gym, etc. — and update your payment information. In some cases, you may have to call and provide the new information over the phone. This part can be as tedious as going through statements, but there's no way around it.
Cancel unwanted subscriptions
Looking at a laundry list of recurring charges might make you think, "I don't need all these." When that happens, don’t just let your accounts go.
If you ignore the merchant’s messages about updating your payment information, you could be charged late fees. Some merchants might even send your account to collections after enough missed payments. That could hurt your credit.
So do it the right way: Cancel your unwanted subscriptions. When you do, ask for confirmation via receipt, email or postal mail, so you can file a dispute if the charges don’t stop.
Centralize your recurring charges
When you’re trying to transfer a bunch of recurring charges, there’s no simple fix. But there are a few ways you can manage these recurring charges centrally and avoid going through the arduous process in the future:
Use an app
Money management apps like PocketGuard let you track recurring payments so you don't have to repeat the seek-and-find process of combing through statements.
Make a list
Keep a spreadsheet with information about which subscriptions and recurring payments are linked to which cards. This isn't a perfect solution. If any of your cards are hacked, lost or discontinued, updating each payment preference will still take a lot of time. But at least you won't have to review old statements.
Keep it all on one card
Perhaps the easiest way to centralize your recurring payments is to designate one card exclusively for automatic bill payments. Leave it at home, well-protected, and use other cards for everyday purchases to limit the possibility that it will be stolen or compromised.
If something does happen to your designated card, moving all the charges will still take a lot of time. But if you're choosing from several imperfect solutions, this might be the simplest.
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