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I think credit cards have an expiration date because it gives them a contractual âoutâ by saying a contract was only for a stated period and not an open-ended contract. The magnetic strip is a bunch of hogwash. The credit card companies do not want to send out millions of cards just because they might wear out.
For example, if you pay a bill automatically once a year on your credit card and your card expires annually, your card is expired every single time the biller tries to use it! One reason credit card companies send you a new card is that the old card physically doesn't last forever.