NEW YORK — Millions of Americans are getting new credit and debit cards with more secure chip technology, and that’s already leading to headaches for companies that rely on working cards to charge their customers every month.
Video and music streaming companies, dating websites, gyms and other subscription-based companies can take a hit when customers don’t update their accounts after receiving a new card. It’s always been a hassle, but with millions of cards carrying the new chip technology being mailed out all at once it’s creating bigger problems.
Netflix this week said large numbers of cards that weren’t updated were partly to blame for slower subscriber growth in their most recent quarter.
The video steaming site said Wednesday that an unusual number of accounts were cancelled during the three months that ended in September. Netflix Inc., which has 69 million members around the world, expects the issue to continue into the next quarter as more new chip cards roll out.