I have a Mastercard credit card issued by a U.S.-based financial institution. Several billing cycles ago the card information was compromised and several hundred transactions were initiated. The card issuer's fraud detection was able to flag all these fraudulent charges and either cancel payments or issue chargebacks. A new card was issued which I activated. However, the next billing cycle, more fraudulent charges were detected, canceled, and new cards issued. This has occurred for four billing cycles now, and four new cards issued.
The explanation I have received from the card issuer is that credit card networks like Mastercard and Visa have agreements with vendors that allow them to forward subscription charges to new credit cards when the card on file has expired. Presumably this is a benefit to customers who don't want their subscription services interrupted when their credit cards expire. The current method for dealing with these fraudulent subscription charges is to call up the credit card issuer and block these vendors one-by-one. This is time-consuming and frustrating, and a method for handling them all at once is preferred.
My question is:
Did I receive an accurate explanation for how subscription charges are forwarded on the credit card network? If this differs by network, please specify.
Secondly, is there a way to opt-out of this service? Does the card issuer have control over if subscription services are forwarded or does the credit network have exclusive control?