Streaming services like Netflix have a hidden mechanism that allows them to continue charging you, even if you switch credit cards. This is due to a banking system that tracks your financial life. When you switch cards, these services don’t stop your service, they simply start charging your new card.
This is made possible by a service called Visa Account Updater (VAU), introduced by Visa U.S.A. in 2003. VAU works with a network of banks to create a virtual tracking service of Americans’ financial profiles. When someone renews or switches a credit card within their bank, the institution automatically updates the VAU. This system lets Netflix and countless other corporations charge whatever card you have on file.
However, if you close out an account entirely, or change to a different credit card provider yourself, the VAU will simply list your account as being closed. So, if you’re looking to stop recurring charges, it might be easier to cancel your subscription directly with the streaming service.
Read more at: gizmodo.com