Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards
finance.yahoo.com232 points by madars 4 days ago
232 points by madars 4 days ago
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.
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.
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.
Big if true.
Pretty sure that debit chargebacks lead to an instant credit (by regulation).
I'm almost tempted to test it right now but I am pretty sure I did this once and it took under 1 day
Ok now I asked a chatbot for how this is regulated. The answer was wrong as expected but it happened to mention the applicable regulation which can be looked up at gesezte-im-internet.de
§ 675u BGB - requires immediate credit for unauthorized card payments
§ 675x BGB - chargeback in 10 days for direct debit transactions (lastschrift)
https://www.gesetze-im-internet.de/bgb/__675x.html
I guess this is just germany but I vagely remember a payment processor eu directive that this is probably implementing (PSD)
-> Yes. It is article 73 and 76 of PSD
https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CEL...
So this holds EU wide for all banks.
This was literally 15 mins of googling (well duckduck ing) on the train.
Now there still could be counterveiling evidence and ianal etc, so use grain of salt. Gotta get off now.
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...
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 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.
> 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 to resolve than your deadline with your landlord. When using a credit card, that risk is not on you.
Why would this risk be higher in the US than in Europe? Europeans usually pay their rent/mortgage using bank transfers too.