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In the US, credit card transactions are reversed in case of fraud (no questions asked, super easy), but if someone lifts your pin and empties your bank account
by chillacy 8y ago
In the US, credit card transactions are reversed in case of fraud (no questions asked, super easy), but if someone lifts your pin and empties your bank account over debit, you’re on your own. This actually makes it more dangerous to use debit vs running it as credit.
Also while you don’t want to take on debt you can’t pay, there’s nothing too complex about debt and credit. Businesses all largely do their accounting like that, and if you really zoom out, all money is a system of debt and credit: the $20 note in my pocket is credit from my company, since I gave them my labor, they owed me. My company in turn was owed by one of its customers for services my company offered. The customer might have gotten money from their company, and so on.
- zaarn 8y agoIf someone lifts my pin and does transactions, my bank will reverse it or cover the damage, no questions asked. I'm aware how credit works, but I prefer not to rely on credits for my life, I prefer spending only money I have right now.
- krageon 8y agoThe reason you think debt is good/acceptable is largely cultural. This definitely isn't the norm in other parts (or even most of) the world.
- chillacy 8y agoAbsolutely. I meant to make that point when I said “In the US...” since the parent poster said they didn’t understand why Americans favor CC over debit cards. I thus gave the reasoning. Had we in America been given the same given circumstances as in Germany I’m sure we would be using debit.