• ZkhqrD5o@lemmy.world
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    6 days ago

    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.

    • JandroDelSol@lemmy.world
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      6 days ago

      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

      • ZkhqrD5o@lemmy.world
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        6 days ago

        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.

        • uid0gid0@lemmy.world
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          6 days ago

          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.

          • ZkhqrD5o@lemmy.world
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            5 days ago

            Jesus Christ, that is absolutely moronic. No wonder people are so obsessed with losing their card.

        • Lfrith@lemmy.ca
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          5 days ago

          What junk? Works same as a debt card but just not directly tied to a checking account, so less a big deal if it is lost or false charges made on it with companies reversing it. Get cashback on purchases, additional warranty on items, and able to do charge backs if company isn’t giving you a refund for whatever reason.

          Most people who run into trouble are because they don’t realize credit cards aren’t free money so go beyond their budget. If you spend what you can afford and pay back each month question becomes more why should a debit card be used over a credit card?

      • Dasus@lemmy.world
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        6 days ago

        Well not to stop it before it happens, surely, but an easier time reclaiming your money due to the buffer.

    • BombOmOm@lemmy.world
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      5 days ago

      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.

      • x00z@lemmy.world
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        5 days ago

        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.

        • NateNate60@lemmy.world
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          5 days ago

          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.

      • sobchak@programming.dev
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        5 days ago

        Fiscally irresponsible

        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.

    • Zorque@lemmy.world
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      6 days ago

      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.

    • callouscomic@lemmy.zip
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      6 days ago

      Tons of cards have zero fees. Some offer rewards and benefits at no real cost. I have for nearly a decade used a card with 1% back on purchases and 1% back on payments. Running all my usual spending through that and then just paying it off has net me a lot of money in that time that I just use for statement credit.

      It’s easy to dispute charges should I ever need to. Rare since I’m cautious anyways, but the extra layer before my actual bank account is nice.

      It has also built up a hell of a credit rating for me as well.

      • Lucidlethargy@sh.itjust.works
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        5 days ago

        You can get 2% cards with no fees now as well. 2% on everything.

        Paid cards go up to 6%, or possibly higher.

        You can game this system if you don’t have debt on them.

        • callouscomic@lemmy.zip
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          5 days ago

          That’s what I do. 2% card with zero fees and no debt on it. Run every possible expense through it monthly and just pay it off.

      • ZkhqrD5o@lemmy.world
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        5 days ago

        I am usually cautious with claims of free money. There is no free money for working class people. So, who’s paying it in that case and for what reason? I reckon the company who is running the platform does it, such that they can get market share to coerce sellers into using their product.

        Or am I seeing this wrong?

        • callouscomic@lemmy.zip
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          5 days ago

          I will agree that a credit card only really made any sense as I began to finally gain more financial independence. Before then, it was pointless.

          The claim is that they are giving you a portion of the merchant fee for utilizing said credit cards.

          I’m sure they also make money by selling all your info.

    • Rachel@lemmy.blahaj.zone
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      5 days ago

      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

    • Lucidlethargy@sh.itjust.works
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      5 days ago

      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.

    • O_i@lemmy.world
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      5 days ago

      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