Honestly, what’s the point of a credit card? Why don’t people mostly use debit cards? It gets just directly wire transferred from your account. No sort of junk fees or monthly subscription needed. Genuine Question.
If someone steals your debit card, they can directly take money out of your account. With credit cards, there’s a buffer between the product and the bank account, and it makes it easier to stop fraud
I’ve had my debit card information stolen before. My bank knew before I did, cancelled the fraudulent charges, and refunded my money without any action on my part. Doesn’t seem like a credit card would have been any advantage in my [admittedly anecdotal] case.
In the US if someone takes your debit card and enters the correct PIN, the transactions are permanent, and the bank has no obligation to give your money back (and if they choose to do so it would be out of their own pocket).
But is it really worth all of the junk that you have to accept? I like the credit scoring, the monthly subscription, and, if you miss the date for paying back, the absurdly high fees. Well, yes, with the debit card you have, technically speaking, the risk of someone being able to make about 100€ worth of RFID payments, and then the code is needed again for the next 100€ RFID payments. For everything else that doesn’t involve RFID, the code is needed always.
The US implementation of chip and PIN left off the PIN. The reason given was “no one wants to put in a PIN every time” so for the vast majority of transactions you just hold up your card to the sensor or put it in the chip reader. PIN is only required for cash withdrawals in my experience.
It’s true in the United States. In the US, a debit card transaction is an EFTPOS (electronic funds transfer at point of sale) and once you enter your PIN, there are no take-backs and if you want a refund and the merchant refuses, you have to resort to the legal system for recourse. Credit cards, on the other hand, have consumer protection rules and dispute procedures.
I mean, there are people who just don’t have the money for a needed “purchase” (like medical care, transportation, or food), and hope they’ll be able to get a better job or make more money in the future to pay it off later. Been there.
I buy stuff for work with my personal card and I’ve made probably thousands of dollars from the cash back. Even on my regular cards I get a couple hundred back off of stuff I normally buy.
There’s other benefits too like using points to buy plane tickets, fancy lobbies in the airport with free food, etc.
Because many people don’t actually have the money on hand. Some do but me and many others are spending money we don’t have yet. It’s a negative feedback loop of debt because capitalism sucks
I’ve just got rid of my credit card after 10 years in NA. Yes it can come in handy if you need a couple grand all of a sudden but damn, what a ball and chain, I hated it
Honestly, what’s the point of a credit card? Why don’t people mostly use debit cards? It gets just directly wire transferred from your account. No sort of junk fees or monthly subscription needed. Genuine Question.
If someone steals your debit card, they can directly take money out of your account. With credit cards, there’s a buffer between the product and the bank account, and it makes it easier to stop fraud
I’ve had my debit card information stolen before. My bank knew before I did, cancelled the fraudulent charges, and refunded my money without any action on my part. Doesn’t seem like a credit card would have been any advantage in my [admittedly anecdotal] case.
Banks can, but they’re not legally obligated to. With a credit card they are. (US)
In the US if someone takes your debit card and enters the correct PIN, the transactions are permanent, and the bank has no obligation to give your money back (and if they choose to do so it would be out of their own pocket).
This problem could be solved.
But is it really worth all of the junk that you have to accept? I like the credit scoring, the monthly subscription, and, if you miss the date for paying back, the absurdly high fees. Well, yes, with the debit card you have, technically speaking, the risk of someone being able to make about 100€ worth of RFID payments, and then the code is needed again for the next 100€ RFID payments. For everything else that doesn’t involve RFID, the code is needed always.
The US implementation of chip and PIN left off the PIN. The reason given was “no one wants to put in a PIN every time” so for the vast majority of transactions you just hold up your card to the sensor or put it in the chip reader. PIN is only required for cash withdrawals in my experience.
Jesus Christ, that is absolutely moronic. No wonder people are so obsessed with losing their card.
Debit cards typically have PIN numbers.
I know these can be defeated in various ways, but its not usually as simple as, just steal someone’s card.
Also, you can just go to your bank or credit union, call them, report online or w/e: Hey, my card got stolen, these txns are fraud.
Might not be as streamlined or as fast as a payment challenge with a credit card, but its not that much worse.
Well not to stop it before it happens, surely, but an easier time reclaiming your money due to the buffer.
My debit card is a master card.
They still need to go through a payment processor, using a debit instead of credit card isn’t really the solution to the current problems.
Fiscally responsible people do it because of the cash back/perks and 0% interest.
Fiscally irresponsible people do it because ‘free money’ (ignoring the 28% annual interest).
Credit cards also offer better consumer protections than debit cards. Ex: chargebacks.
This is not true for many countries. Debit cards in my country have equal or even better consumer protections than credit cards and are also cheaper.
It’s true in the United States. In the US, a debit card transaction is an EFTPOS (electronic funds transfer at point of sale) and once you enter your PIN, there are no take-backs and if you want a refund and the merchant refuses, you have to resort to the legal system for recourse. Credit cards, on the other hand, have consumer protection rules and dispute procedures.
I mean, there are people who just don’t have the money for a needed “purchase” (like medical care, transportation, or food), and hope they’ll be able to get a better job or make more money in the future to pay it off later. Been there.
I buy stuff for work with my personal card and I’ve made probably thousands of dollars from the cash back. Even on my regular cards I get a couple hundred back off of stuff I normally buy.
There’s other benefits too like using points to buy plane tickets, fancy lobbies in the airport with free food, etc.
Because many people don’t actually have the money on hand. Some do but me and many others are spending money we don’t have yet. It’s a negative feedback loop of debt because capitalism sucks
Because people are reliant on debt because wages haven’t kept pace with expected standards of living.
Of for more ago well off people some cards offer perks like cash back or air miles and it’s free if you pay it off in full each month.
Also, in my country at least, you get more protection if you have an issue with the goods you’ve bought. https://www.moneysavingexpert.com/reclaim/section75-protect-your-purchases/
You get points. I pay a fee on only one of my cards, the one that gives me 6% back on groceries. I make decent money using that card.
I’ve just got rid of my credit card after 10 years in NA. Yes it can come in handy if you need a couple grand all of a sudden but damn, what a ball and chain, I hated it