Risks and Issues of Long-Term Inactivity of Overseas Bank Cards

Title Risks and Management Strategies for Long-Term Inactive Overseas Bank Accounts

In the current context of globalization and the increasing popularity of digital payments, more and more people are choosing to hold overseas bank accounts or international bank cards for cross-border consumption, investment, studying abroad, online shopping, and other purposes. However, as the frequency of use declines, some users may end up leaving their overseas bank cards unused for extended periods. While this situation may seem harmless at first glance, it can actually lead to a series of potential risks and inconveniences.

Firstly, accounts may be frozen or closed due to long-term inactivity. Major financial institutions such as Bank of America and Citibank typically conduct reviews on accounts with no transaction history over an extended period. According to a financial report published in August 2025, some international banks have tightened their management of dormant accounts. If an account has no transactions for 6 months to 1 year, banks may suspend its functions, charge maintenance fees, or even close the account directly. For users, this not only means going through a cumbersome reactivation process but could also result in the inconvenience of being unable to access funds when needed.

Secondly, security risks should not be overlooked. When a bank card remains unused for a long time, users often pay less attention to it, increasing the likelihood of neglecting account security. Incidents such as hacking attacks and data breaches still occur from time to time. In September 2025, media reports indicated that a European bank suffered a large-scale data breach, with some customers' old account information illegally obtained and used for fraud. Since these accounts had not been used for a long time, users failed to detect suspicious transactions in a timely manner, resulting in financial losses. Even if the card is not frequently used, it is advisable to log in regularly and review transaction records to ensure account security.

The accumulation of account management fees can also become a financial burden. Many overseas banks impose annual, monthly, or minimum balance maintenance fees. If users do not use their accounts for a long time and have not set up automatic transfers or fee alerts, they may incur charges unknowingly. For example, HSBC and Standard Chartered Bank charge monthly maintenance fees on certain international accounts if minimum deposit requirements are not met. Over time, these fees may exceed the account balance and even affect the user's credit record.

Moreover, long-term inactivity of international bank cards may indirectly impact credit scores. While most banks do not directly affect credit scores due to account inactivity, if there are outstanding fees, overdue charges, or forced account closures, such information may be reported to credit agencies. Particularly in the United States, where the credit scoring system is highly developed, any negative records related to bank accounts could affect future loan applications, rental agreements, or even employment opportunities.

For long-dormant overseas bank accounts, users are advised to proactively contact the bank to cancel annual fees or apply for a dormant account status to avoid unnecessary complications. Additionally, with increasing financial regulations globally, banks are required to verify customer identities more frequently. For instance, under the EU’s General Data Protection Regulation GDPR and the U.S. Patriot Act, banks have the obligation to periodically confirm customer identities and account purposes. If an account has not been used for a long time, the bank may request users to resubmit identification documents or undergo video verification. This can be particularly inconvenient for users living abroad, especially when language barriers or unfamiliar procedures are involved.

Another often-overlooked issue is that overseas bank cards are typically linked to foreign currency accounts, and currency exchange rate fluctuations may affect the value of the account. If an account holds foreign currency and remains inactive for a long time, users may miss optimal exchange rate windows. For example, the exchange rate between the U.S. dollar and the Chinese yuan has fluctuated significantly in recent years. If a user holds U.S. dollars but does not convert or transfer them in a timely manner, the actual value of the assets may decrease due to exchange rate changes.

In summary, long-term inactivity of overseas bank accounts can lead to various risks, including account freezing, security threats, accumulating management fees, credit impacts, identity verification issues, and potential losses from currency fluctuations. To avoid these problems, users are advised to take the following steps

1. Regularly log in to check the account status.

2. Proactively contact the bank to understand account management policies.

3. If the account is no longer needed, close it as soon as possible.

4. If retaining the account, set up small automatic transfers to maintain activity.

For individuals holding overseas bank accounts, proper account management is not only a matter of asset responsibility but also a way to safeguard financial security. In an era of increasingly frequent cross-border financial activities, staying vigilant and maintaining active account oversight will better equip users to handle future financial needs and challenges.