241–250 of 386 posts
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Among the middle and higher as well.
The problem as I see it is that you pay your credit card bill only once a month which gives you no bearing on your effective balance. This is mostly a problem for lower and middle income people who live from paycheck to paycheck.
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What are you talking about? When have you last been to Europe!? Of course you can pay with debit cards all over Europe, every card terminal accepts them! Online the same, you just use your card details like a credit card, the payment system is the same for years now anyway - thats the whole point of initiatives like this digital euro and Wero!
Direct debit is not the same as debit card. You can pay in physical stores with debit card but not with direct debit (which does not involve a card at all).
As a side note, in some countries, it is actually possible to initiate a direct debit at the POS (since cards sometimes contain enough information to recover the IBAN, mostly for historical reasons), but this has significant risks for the merchant and is usually not worth the hassle as debit card fees are very low anyway.
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Do you mean debit cards? With very few exceptions, you can't pay with direct debit in-store, and for online payments at merchants that don't know/trust you yet as a customer it's also pretty uncommon.
What are you talking about? When have you last been to Europe!? Of course you can pay with debit cards all over Europe, every card terminal accepts them! Online the same, you just use your card details like a credit card, the payment system is the same for years now anyway - thats the whole point of initiatives like this digital euro and Wero!
The Digital Euro does not exist yet, and Wero is yet another scheme (settling via SEPA instant credit transfers, I believe, but that's more of an implementation detail and doesn't change the fact that it is its own scheme with its own rules).
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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.
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.
https://en.wikipedia.org/wiki/Possession_is_nine-tenths_of_t...
Reminder 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.
Reminder 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.
Reminder to all commenters that Europe is not a single homogeneous country and somewhat diverse in various things, including payments and finance. Credit cards are definitely a thing in many European countries.
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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.
It's mostly about who possesses the money. With debit, the money is transferred. With credit, the money is scheduled for transfer, subject to my approval. https://en.wikipedia.org/wiki/Possession_is_nine-tenths_of_t...
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 their additional liability protections (largely motivated by considerations of brand perception, which would suffer if the same logo sometimes confers weaker protections).
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.
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This differs a lot by country and customer. For example, in Germany, without a fixed income, you’ll usually not get access to an overdraft loan. In the US, overdraft is generally considered a very bad thing (almost worse than the idea of credit to Germans!) and a failure of the accountholder to “balance their (figurative, today) checkbook”, and the idea of an overdraft limit as a line of credit with a defined interes…
Yes, I was highlighting the difference with the US system. Another difference is that if you know someone's account number, you can send them money but not take any out of their account. I understand it's more or less the other way round in the US.
Practically, the bank allowing a merchant to submit direct debits takes on significant credit risk as a result, so they grant that permission pretty carefully, similarly to how card processing merchant accounts require some level of trust.
There already exists multiple EU-wide payment systems handled by commercial banks. They just need to step up their game a little bit to get rid of Visa and Mastercard, which provide all the debit and credit cards.