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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

#371

Post by insane_dreamer »

raron wrote: post #280
insane_dreamer wrote: post #276

Earlier quoted context omitted.

I must be missing something because I still don't understand what differentiates a "Digital Euro" from "Euro stored in digital form". They're essentially the same. The reason why crypto currencies are different is the mechanisms by which they are exchanged (i.e., blockchain) or how they are issued (i.e., mining). The ECB already has control over how the Euro is exchanged and issued. The only thing a digital euro does…

The difference is more a financial or legal thing, than a technical one. From an users' perspective paying with digital Euro would work more-or-less the same as you pay today with card, bank transfer or something based on QR codes. But it will have very different guarantees and trusts behind the scene. Today you don't really think about keeping your money in a bank and paying with card as a different thing than havin…

thanks, that makes sense.

seems to mostly be a question of giving the ECB more control at the expense of the banks?

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

#372

Post by port11 »

lxgr wrote: post #366
port11 wrote: post #356

Earlier quoted context omitted.

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.

Visa isn't a party to your contract with your card issuing bank. Your bank is responsible for filing a dispute, representing it properly, and (according to applicable law and/or as a good business practice for somebody that wants to retain your business) potentially reimbursing you out of pocket if a given transaction has issuing bank fraud liability.

Sure, but the fees I pay for go to Visa for, among others, combatting fraud and credit card cloning. I filled up my bank’s paperwork, I don’t know the inner details of their relationship with Visa.

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

#373

Post by dmoy »

lxgr wrote: post #352
dmoy wrote: post #256

Earlier quoted context omitted.

> 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.

The risk isn't bank transfers to your bank for your mortgage. The risk is card skimmers at a gas station or whatever. The theft isn't when you pay your rent, the theft is something preventing you from paying your rent, due to some totally unrelated prior transaction.

I think the risk is higher in the US compared to Europe because Europe was way faster to roll out chip stuff, whereas in the US it's still somewhat common to have to use the mag stripe.

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

#376

Post by ifwinterco »

watwut wrote: post #325
ifwinterco wrote: post #317

Earlier quoted context omitted.

I would argue the opposite, makes no sense to pay right away when you can pay with no interest 15 days later on average. In an inflationary fiat currency system it's always better to defer payment assuming you can manage your cashflow and you're living hand to mouth

> makes no sense to pay right away when you can pay with no interest 15 days later on average. Why in a pray tell would you favor late payment? Why would I create myself a chore for an end of a month if I can just pop a card, pay and see the transaction in e-banking right away? If it is auto-charge by the end of month, why not charge it right away? You are gaining absolutely nothing. > In an inflationary fiat currenc…

Say you spend €1000 per month. If you use a credit card, you can earn interest on that for an month and only need the money in your current account on the day you pay.

So at 5% annual interest that’s about €4. So yes it’s not huge, but that’s every month for your whole life and it compounds over time.

The benefit is small (it won’t make or break your finances) but real.

That’s what I mean by “inflationary fiat currency” - you are paying in something that constantly loses value. Therefore rationally, it makes sense to pay as late as possible.

In some sense everything is actually slightly cheaper if you buy it on a credit card and pay it off a month later

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

#377

Post by rsynnott »

tlogan wrote: post #361
rsynnott wrote: post #301

Earlier quoted context omitted.

> And Ireland seems similar to the US when it comes to credit card usage (vs debit). That's definitely not the case. Many people would have credit cards, but there's a lot less incentive to actually use them than there is in the US, because the interchange (paid ultimately by the merchant) is capped at 0.3% in the EU (whereas in the US it can be upward of 3% on high-end cards). The interchange pays for the 'reward' s…

> Without those, why bother? Peace of mind (that your checking account is not drained)?

How would that happen? Chip and pin has been mandatory for years, as is 3dsecure.

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

#378

Post by mrtksn »

margalabargala wrote: post #368
mrtksn wrote: post #320

Earlier quoted context omitted.

Yep, that's why I always used CC and pay in full(until it become much more logical to pay the minimum and accumulate interest that is lower than the inflation). It's much better to be indebted when buying something simply because if something goes wrong its much easier to convince someone to take their thing back when you haven't paid yet than trying to convince someone to send your money back and accept a return.

I've never seen a CC with an APR below 20%, which inflation has never hit in the US. But the logic is sound as long as your income is tracking inflation. Your second paragraph is accurate.

In US, maybe. In Turkey before the general election in 2023 the rates were kept so ridiculously low that you could have taken cash out of your CC and put the money in the savings account in the same bank and make money out of the arbitrage. Everyone did it, having good credit meant license to print free money, IIRC it was %2-%3 per month tax free net profit on the credit you took on your CC limit.

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

#379

Post by Kuinox »

margalabargala wrote: post #262
Kuinox wrote: post #239

Earlier quoted context omitted.

I always find it funny that americans think the button to oppose a payement doesn't exists on my banking app because I have a debit card and not a credit card.

In your rush to dunk on Americans you misunderstood the comment. Everyone in America is perfectly aware that the "dispute" button exists. Trouble is, the lag time between hitting the button and getting your money back can be weeks. With a credit card you are out zero money.

> the lag time between hitting the button and getting your money back can be weeks.

Nope, it's as soon as the bank is aware. In your rush to correct me, you failed to understand that there are simply better customers protection here which make a product such as a credit card mostly useless.

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

#380

Post by margalabargala »

Kuinox wrote: post #379
margalabargala wrote: post #262

Earlier quoted context omitted.

In your rush to dunk on Americans you misunderstood the comment. Everyone in America is perfectly aware that the "dispute" button exists. Trouble is, the lag time between hitting the button and getting your money back can be weeks. With a credit card you are out zero money.

> the lag time between hitting the button and getting your money back can be weeks. Nope, it's as soon as the bank is aware. In your rush to correct me, you failed to understand that there are simply better customers protection here which make a product such as a credit card mostly useless.

Big if true.
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