united-states finance payment
Do you owe money to a company who is trying to charge a disabled/expired credit card?
<p>A disposable credit card company from the US wrote 'recently' on their twitter</p>

<blockquote>
  <p>Canceling a subscription can be difficult, time consuming, and frustrating. Or it can be as easy as clicking a button and closing/pausing your [...] card.</p>
</blockquote>

<p>Source: <a href="https://twitter.com/PrivacyHQ/status/1083048623678672900" rel="nofollow noreferrer">https://twitter.com/PrivacyHQ/status/1083048623678672900</a></p>

<p>So the way this works is that you have one virtual card per merchant/transaction and you can easily disable the card from the application (e.g. you sign up for a Netflix free trial and disable the card straight away).</p>

<p>My understanding is that if you fail to pay the company they can sue you for failure to pay and still demand the money in question. The one thing I can imagine affecting this is whether the company continued to provide the service in question (e.g. in the case of Netflix they will block your account when the payment fails), but I can't think of any legal basis how that would make a difference (as you still have a legal agreement to pay).</p>

<p>You owe money if there is a contract obliging you to pay. Whether you receive what you pay for (e.g. services) only affects your stance when suing for non-performance/damages; your obligation to pay still stands until the court decides it does not (or there is a mutual agreement to discharge the contract).</p>

<p>It is irrelevant whether the original payment method still works or not. If it does not but you still owe money — you have to pay.</p>

<p>The ability to turn the credit card off is just a handy feature. It does not affect your contractual obligations in any way except for when the terms explicitly provide for it (like automatic cancelling subscription when payment method fails).</p>
