Earlier quoted context omitted.
Your transactions aren't tied to some provider in New York blocking you over night?
Please elaborate.
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Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards
351–360 of 386 posts
Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards
#352Earlier quoted context omitted.
This has basically nothing to do with it. A bank deposit is a liability of the bank, and possession is not a useful lens here. What matters are the legal and contractual rights and obligations you have against the card issuer. In the US, these are historically different for credit cards (Fed Regulation Z) and debit cards (Regulation E), but since it's now effectively the same two schemes running it all and imposing t…
> The main practical difference nowadays is that in the case of debit cards, you're out your own money for a few days, while with credit cards, the only thing that temporarily suffers is your open-to-buy/line of credit Right, and this is GGP's main point The risk to a debit card user in the US is higher because the money you need to pay your rent or mortgage may temporarily disappear due to fraud, and may take longer…
Why would this risk be higher in the US than in Europe? Europeans usually pay their rent/mortgage using bank transfers too.
Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards
#353Earlier quoted context omitted.
Germany is very debit-card oriented (with no interest of switching). The Netherlands seems similar. Eastern Europe and the Balkans are also mostly debit-card oriented, but people seem more open to switching to credit cards (if they can get one - especially the younger generation). Ireland and the U.K. seem much more credit-card oriented than rest of Europe. Turkey is also very CC oriented (kinda strange - was not exp…
The preferential treatment of credit cards for certain transactions influences how they're used in the UK. Suppose in January two people Carol and Dave bought a £250 August flight to Paris from some outfit that didn't do a great job hedging their fuel prices. Carol used her credit card, Dave used his Debit card. UK law says Carol's flight was bought by her bank, after all her bank handed over the money, Carol is on t…
For what is worth, a few years ago, I was able to chargeback a significant furniture order after the company collapsed. It is indeed at the bank's discretion and my bank didn't really advertise the process, but the people in branch pointed me to the right place and the process was no fuss.
So, no, you do not have the same legal protection as Section 75, but it is always worth a try.
Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards
#354Earlier quoted context omitted.
In the US, having debt is seen as a good thing, as long as you stay current on payments. Not having debt gives you a lower credit score than having debt, which send kind of fucked up to me.
That's a common misconception. Credit score is positively correlated with paying on time, having high available credit relative to usage, and the age of your oldest credit account. However, using more of your cards' limit (a high debt utilization ratio) actually reduces your score. On-time payments are only one factor in your score. Depending on the model it may only account for 20-30% of the score. Using your cards…
can 100% confirm this on a personal level, outside of mortgage I have no credit card balances (I use CC extensively but always pay the full balance) and have had 835+ score for years now.
Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards
#355Earlier quoted context omitted.
Same fraud systems monitor credit cards except in the American case you get at worst 1% cash back so 1% off the purchase price of everything and if something does happen, and regardless of protections fraud still occurs, it’s the bank’s money that is gone and not yours. Separately the EU is a large collection of states and each one has its varying levels of participation and sophistication with payment processing. Ap…
Accepting cards from US-controlled schemes is not an issue at all. The geopolitical issue is not having any alternative, and these US schemes being the only way to pay even in domestic transactions. Almost nobody considered this a problem until a few years ago, but the relevant EU stakeholders got pretty rattled recently [1], and my prediction is that this particular bell can't be un-rung. [1] https://www.theguardian…
Well it doesn’t matter whether it’s un-rung. Europe can develop payments tech, folks visiting continue to operate like they normally do. The US is increasingly accepting payment mechanisms and cards from other providers too. Continued competition is good here all else being close to equal.
Each nation or economic block or alliance or whatever will have to decide which kinds of products and services they’ll want to protect or build in-house. While the EU lambasted the United States when it began taking measures to do what the EU is doing now, it’s encouraging to see the EU change course and start to protect its industries, though who knows how effective that will be. China is looming large over the EU, Germany in particular.
Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards
#356Earlier quoted context omitted.
In my corner of the world, credit cards were for buying stuff on the internet and travelling outside the EU. Now the net has evelved enough to accept our normal means of payment. I always feel insecure when using a credit card.
As a US-ian I feel exactly that way when using a debit card. A credit card, if misused, can run up your balance and then you dispute, and don't pay anything until it's resolved. A debit card, if misused, can drain your account and leave you penniless until it's resolved.
The two times someone cloned my credit card were a) while travelling in the US; b) complaints that VISA didn’t refund. So there’s that.
Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards
#357Reminder to the people reading this thread and overall comments, that in Europe everyone uses Debit Cards instead of Credit Cards. Credit Card in Europe is very much associated with Debt.
One should also bear in mind that the technical difference between Debit and Credit cards is quite blurry in the EU. Like, a card can officially be of the Debit kind, but have all the features of a Credit card enabled. Which is actually and typically the case. And for example in Ukraine the situation is exactly the opposite: cards issued are typically Credit cards, but with all features of credit cards turned off whi…
Great point. N26 “credit” cards are debit cards with embossed letters in them and a CVV for buying online. Same with my Belgian bank.
Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards
#358Pros: break the duopoly of Visa and Mastercard. Convenient. Low fees.
Cons: in a couple of years, a well-meaning but idiotic EU official will try to restrict what you can buy with Digital Euros and demand that the police keep tabs on your purchases. You know, to “protect the children.”
Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards
#359Earlier quoted context omitted.
In my corner of the world, credit cards were for buying stuff on the internet and travelling outside the EU. Now the net has evelved enough to accept our normal means of payment. I always feel insecure when using a credit card.
As a US-ian I feel exactly that way when using a debit card. A credit card, if misused, can run up your balance and then you dispute, and don't pay anything until it's resolved. A debit card, if misused, can drain your account and leave you penniless until it's resolved.
The solution is not to misuse your card. Don't do business with shady companies- problem solved.
Re: Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards
#360Earlier quoted context omitted.
That's a clear case of perfect being the enemy of good. Are CBDC privacy friendly? No, but it's better than 100% of the credit cards currently being used in Europe being part of the network of two big US companies.
> perfect [as] the enemy of good In real critical systems, that seldom happens. Satisficing is the recipe for disaster. The current disastrous "world" is built on imperfect systems, "what could possibly go wrong" style. It takes full work to create an acceptable instrument. You are mentioning an improvement over credit cards - we would like to have a payment system acceptable by - say, the more "attentive", "discrimi…
Can you say that a bit more clearly? What's your practical suggestion?