Consumer complaint received 2015-06-02
Company: DISCOVER BANK
State: MD
Product: Credit card
Issue: Credit card protection / Debt protection

Complaint:
I have recently learned that my credit card issuer ( Discover ) provided my credit card number and expiration date to a merchant ( XXXX XXXX ) without my authorization. Had I not reviewed my monthly statement in detail, this charge would have been incurred unnoticed. 

Since XXXX 2015, XXXX XXXX was attempting to automatically renew a subscription for a service purchased a year prior. They were unable to process the charge since my Discover card number changed the previous year ( number was stolen, new card was issued ). I contacted XXXX XXXX on XXXX to expressly request, in writing, that I wished to discontinue the once-purchased service. They acknowledged my request and said that after a time-out period the attempt to charge will cease and my account will reset. 

However, on XXXX, after apparently XXXX attempts to charge my previous credit card number, Discover provided my new credit card number and expiration date to XXXX so that they could process my transaction. I was never informed of this action. 

I do not view this as a lapse of XXXX since they considered that the issue would take care of itself once the charge failed to post after several attempts. But I have never heard of a credit card volunteering an individual 's credit card information to a merchant, or anybody, for any reason. I find this disturbing, whether it is under the guise of customer service or not. 

I have since read, and been informed, that it is part of an " Account Updater '' service that appears to exist between merchants and the credit card issuer. This " Account Updater '' service applies to special " recurring '' charges, although these are not disclosed on monthly credit card statements, and the customer has no ability to opt out of the program. I asked my Discover rep on XXXX to opt me out of the program and to no longer disclose my credit card number to any merchant. I was told that this is not possible. 

While there may be instances where this type of service benefits consumers, I find it remarkable that the consumer is not directly involved in making this decision. Instead, the agreement is made between a merchant and a credit card issuer. According to my Discover rep, the consumer authorization must be part of fine print agreements when a consumer purchases a merchant 's service, on a recurring basis only. I have not verified this, but I would certainly not agree to anything a merchant puts forth to indicate their ability to obtain updated credit card information other than directly from me. 

Ultimately the protection and disclosure of a credit card number is an individual 's responsibility and right. As such, this program should begin with the consumer and should exist between the consumer and credit card issuer. The service, and use thereof, should have no bearing on recurring service agreements between consumers and merchants. While visibility and awareness of the program would be a vital first step, I would hope to see a restructuring that permits a consumer, as expected, complete authority of their credit card information.

Company response to consumer: Closed with explanation