When using Blackbaud Merchant Services or CyberSource to process credit cards, you may find that recurring gift transactions with expired credit card expiration dates are successfully processed.
For transactions processed by Blackbaud Merchant Services or Cybersource, the Blackbaud Payment Service now processes recurring transactions that reference expired credit cards. The ability to process recurring transactions that use an expired card with these gateways was deployed with the new release of our Payment Apps. The expiration date is not always required by credit card processors, but Blackbaud does report it. In the past, expired credit cards would be declined at the gateway -- they would not even make it to the credit card processor.
This new feature no longer prevents the transaction from reaching the credit card company. The credit card provider then determines whether to allow the card to be processed. If the card holder is still in good standing with the company, and if the credit card number has not changed since it expired, then usually the credit card company will allow the card to be processed. The card company has access to the expiration date, and makes a decision based on all of the above information.
This feature was added to enable Raiser's Edge users to automatically update credit card information through the credit card provider rather than reaching out to the constituent and doing it manually. The goal is to increase likelihood of giving.
If a card is known to be expired or bad, we strongly recommend removing it from the recurring Batch, Pledge Gift, or Recurring Gift information to prevent it from being charged again in the future. You can also write off a pledge or terminate a recurring gift to keep the transactions from being generated.