An expired credit card is not necessarily an invalid credit card. It's ultimately your credit card issuer's decision if they want to accept your transaction. While the merchant who processed your transaction almost certainly sent along your CVC code and expiry date in the payment request, sometimes the credit card issuers and/or acquirers do not even look at or process that information. If there is enough information to go off of to for the issuer to believe that this is a valid transaction, they still may decide to process your transaction regardless of your card being expired or the CVC being incorrect.
Most major credit card issuers and acquirers now also offer merchants software that automatically updates subscription customer card data as well. On top of that, expiration dates are not considered sensitive information. Under certain use cases, it's fine for merchants to retry your transaction with a new expiration date - it's pretty easy to guess and build logic around what your new expiration date probably is.
This also means that merchants should never decline a card at checkout just because it looks to be expired. In my experience, there is no change in authorization rates between expired cards and cards that have not expired yet.
If you are a consumer, always destroy old expired cards when you receive a new one. And do not assume your account has closed just because your credit card has expired.
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