Controlling Subscription Costs

I am trying to control subscription costs, and finding it more difficult than expected.

When you buy something online with Visa or Mastercard, the merchant is prohibited from saving the 3-digit security code. Unless it is a recurring subscription.

You might think that the fees will terminate when the card expires. Nope. Mastercard Automatic Billing Updater (ABU) and Visa Account Updater (VAU) are services that provide merchants with the info from a replacement or updated charge card. So the charges continue without your notice or approval.

If you paid on your phone with Google or Apple Pay, then you can use those services to cancel. However Google will typically charge your card 1-2 days in advance of renewal, on the excuse of trying to maintain uninterrupted service. If you cancel before the renewal date, then presumably Google will undo the charge.

If you subscribed to Twitter/X on Google Play, then you cannot even use Twitter to manage the subscription. Google owns the payment contract. Twitter does not even see the charge card number. You can only cancel or renew on Google, not Twitter. When I tried, Twitter gave me this message:

Premium -- Expiring soon
Your features will be available for the remainder of your billing period. Looks like you bought this subscription on the X Android app. You’ll need to manage or cancel your subscription from there.

I knew that Google and Apple take big commissions on their app store sales, but I had no idea that they own the renewal rights.

I guess I will have to lose my blue check mark until I free myself from Google.

Some banks offer virtual credit card accounts. These used to have the advantage that you could set them to expire in a money, and with a low credit limit. Then you use one to buy some online services, and then let it expire with the confidence that any unwanted charges will be severely limited.

However, no more. Visa and Mastercard now block these services. You can still get a virtual card, but Visa and Mastercard will renew it and send the updated info to the merchants.

It appears to me that I can still open a vitual charge account, allow it to be scheduled to expire in three years, and then manually cancel it after a month. This should be a way to avoid the card updater service.

Another alternative is Privacy.com. It is not a bank, but it can create virtual charge accounts and let you manage them online. It has a free plan, with premium plans starting at $5 per month.

I find that I have to have multiple bank cards, because charges are sometimes inexplicably declined. Sometimes I have to call the bank and ask them to unfreeze the card. Often I cannot figure out why a completely routine charge was questioned.

All in all, these charge accounts are extremely good deals for consumers, but some of the rules are baffling. If a purchase is declined, why can't the bank app tell me why? If I am buying with the phone on a merchant card terminal, why can't the phone let me approve the amount of the purchase? Who decided that restaurants should be able to add tips after I approve the bill and get my card back? Why isn't easier to control expenses?