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Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards

finance.yahoo.com

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Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards

#81

Post by krzyk »

mothballed wrote: post #67
poisonborz wrote: post #53

Earlier quoted context omitted.

In EU most people use direct debit. The term "credit card" is almost synonymous with debit. Chargebacks theoretically exists but they are more complicated, I don't know anyone who ever did that.

How do you deal with fraud and people cleaning out your bank account money rather than OPM of a credit card company? Just have enough spare cash for a burner checking account and wait for the fraud reversal? In the US you'll almost always get your money back if someone defrauds your debit card but you could be in for a painful time if you depend on the money in that checking account until it gets fixed.

I don't think people keep all their money on a single account. I have 20 in my bank (different savings, some foreign currency accounts, etc.), and only one is tied to my debit card. I move money there when I need it. Opening another account number is just few clicks away. There is a limit for it also.

Single account sounds more like a boomer thing.

Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards

#82

Post by gschizas »

euio757 wrote: post #5

> giving Union citizens the freedom to opt to pay with central bank money Because nothing speaks freedom more than a crazily centralized digital currency /s

It's centralized right now, digital or not, around the two major US payment processors (Visa and MasterCard).

Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards

#83

Post by dgellow »

Dries007 wrote: post #71
blenklo wrote: post #57

Earlier quoted context omitted.

EU is very good, most of the time. Besides this GDPR Website thing, usb-c is great, energy standards are great, etc.

GDPR could have been great, if it was actually enforced in the way it was intended. Cookie banners and dark patterns are not actually allowed, but without enforcement, it's basically meaningless. IMO the biggest issue is that the member states are individually required to set up agencies to police this. This makes perfect sense for local companies, but is meaningless against large entities that operate across the ent…

It is being enforced: https://www.enforcementtracker.com

You can report issues to your local watchdog. That takes quite some time, given the large amount of companies that do not follow the law, but it is enforced

Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards

#84

Post by poisonborz »

mothballed wrote: post #67
poisonborz wrote: post #53

Earlier quoted context omitted.

In EU most people use direct debit. The term "credit card" is almost synonymous with debit. Chargebacks theoretically exists but they are more complicated, I don't know anyone who ever did that.

How do you deal with fraud and people cleaning out your bank account money rather than OPM of a credit card company? Just have enough spare cash for a burner checking account and wait for the fraud reversal? In the US you'll almost always get your money back if someone defrauds your debit card but you could be in for a painful time if you depend on the money in that checking account until it gets fixed.

Yes, I think most people have several accounts, or at least a main and a "spare money" account. If you can prove a fraud the law mandates the bank to back it up. In EU bank apps there are often many warnings and popups when authorizing a transaction. Also in EU you can get a refund of any digitally made purchase, by law you can send back the item for 30 days.

Chargeback always seemed strange to me and never needed it. Fraud should be reported and handled at the root, not by making digital transfers into some magic disappearing money.

Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards

#85

Post by jeroenhd »

cloudie78 wrote: post #46

And how do I exit this walled garden and pay in GBP to UK, or USD to USA, or dare I say Yuan to China. What about RSD to Serbia? CHF to Switzerland?

You put the money in your bank account and use that to pay, or you buy the other currency. The same way you would with physical coins and notes.

Or, if the UK/USA/China set up their own pseudo-cryptocurrency, you can probably exchange digital euros for digital dollars or digital yuans.

Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards

#86

Post by dgellow »

jasonvorhe wrote: post #2

I'm not gonna use CBDC because they'll get hooked up to digital id, no matter what they're "promising" right now. This is just another shitcoin no one asked for.

You don't have to use it. you can continue to use your bank account (which is linked to your id, obviously)

Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards

#87

Post by wongarsu »

mothballed wrote: post #67
poisonborz wrote: post #53

Earlier quoted context omitted.

In EU most people use direct debit. The term "credit card" is almost synonymous with debit. Chargebacks theoretically exists but they are more complicated, I don't know anyone who ever did that.

How do you deal with fraud and people cleaning out your bank account money rather than OPM of a credit card company? Just have enough spare cash for a burner checking account and wait for the fraud reversal? In the US you'll almost always get your money back if someone defrauds your debit card but you could be in for a painful time if you depend on the money in that checking account until it gets fixed.

Never had fraud on my credit or debit cards, and with 3D Secure it's difficult to pull off (basically 2FA for all online credit card purchases).

But I did have someone fraudulently making direct debit transfers from my bank account. My bank cleaned that up within three business days

Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards

#88

Post by larkost »

Hikikomori wrote: post #60
freediddy wrote: post #23

How does digital euro replace credit cards? That's basically the same as direct debit. It doesn't address the reason why I use credit cards. I use credit cards as a proxy for my bank accounts. I know that my issuing bank will protect me from all fraud so I don't have to worry about losing money if I buy something from a fraudulent merchant. I also know I can do things like chargebacks if I have to. None of this is ad…

We just don't have that much fraud instead.

I don't have numbers for you, but I do know that every European I know is much more worried about card fraud than the Americans I know. One quick example is that the Europeans get very nervous when the waiter takes the credit card away from the table in the U.S.. This is just not done in Europe because there is a (at least perceived) history of skimming in much of Europe.

One big difference is that in the U.S. cardholders are largely protected from credit card fraud (not debit card fraud), so the card vendors have to take the risk and so have robust anti-fraud measures (both before and after payment). Largely it is the merchants who have to prove that there was no fraud. Whereas in Europe the burden of evidence (not proof) is with the cardholder.

Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards

#89

Post by ufo »

petcat wrote: post #18
basisword wrote: post #10

Earlier quoted context omitted.

A vast majority of card transactions in the EU are done via debit card. Credit card accounts for only around 25% vs debit. And the only place I've swiped my card was once, in the US, about 15 years ago.

> Credit card accounts for only around 25% If this is true then what will this new "digital Euro" change about the reliance on US credit cards? It seems that the 25% of people that are swiping US credit cards are doing it for the convenience and benefits of using a credit card. Will this digital euro change that?

European banks offer the credit, but the payments infrastructure currently goes through US companies. The first step is to get those payment processors out of the picture.

In Brazil, which is further along in the transition to digital cash, PIX already supersedes debit cards. Some banks already offer deferred PIX payments, wherein the merchant receives the money right away and the buyer pays their bank later, with interest. The central bank is also developing a "pix with guarantee", which will compete with credit cards: payment would be agreed to be settled at a later date, with the bank guaranteeing that the merchant will receive the money.

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