4 ms·

I have never used a credit card when living in Europe, it was a debit card... but it is effectively debited at the end of the month only. So you have to pay in

by llsf 6y ago

I have never used a credit card when living in Europe, it was a debit card... but it is effectively debited at the end of the month only. So you have to pay in full at the end of the month. And the bank is responsible for the security on the card, so if it is hacked somehow, the bank has to fix/pay for it. So, it is a bit strange when moving to US, and then being responsible for the poor security of the cards (debits or credits) provided by my US bank. Now the anti-fraud system is pretty sophisticated. I once got my CC being copied at a fast food, charged fraudulently like less than 30min after my order at the fast food, and have the CC company called and asked to verify the fraudulent charge. It is just strange not spend that money upfront with better security on the cards, rather than let it wide open and then build complex/velocity/AI system to point potential fraudulent charges, call me, cancel charges, and send me a new CC.

tyoma 6y ago
Wait, how are you responsible for poor card security? You are protected from more than $50 in liability by federal law, and more than $0 by virtually every issuers policy. More often than not, your issuer automatically detects and blocks fraudulent purchases.
- Spooky23 6y ago
  Overdrafts. It’s the first of the month and your mortgage and car payment is debited. Except some asshat drained your account and the overdraft exceeds your accounts limit. Eventually everything gets fixed, but you deal with a lot of stress and risk. There’s literally no reason to not carry a credit card and have the bank hold the risk.
loeg 6y ago
> but it is effectively debited at the end of the month only. So you have to pay in full at the end of the month. In the US, you've described "Charge Cards." Some of the cards American Express offers are charge cards. (I don't know of other vendors with such cards.)
- splonk 6y ago
  Diners Club, although they're a very small player. Some corporate cards as well, I believe. Possibly some of the niche cards targeted at people with very bad credit act this way as well. Basically the very large majority of consumers won't see a charge card besides AmEx.
nemothekid 6y ago
>I have never used a credit card when living in Europe, it was a debit card... but it is effectively debited at the end of the month only. So you have to pay in full at the end of the month. This is pretty much how the high tier credit cards work in the US (or atleast how the people who own them say they work). The CSR has some insane 28% APR, way higher than Chase's mid tier card. Amex's premium cards (Gold, Platinum) also work the same way. In your case, what happens when you don't have enough money at the end of the month? You are effectively in debt.
- llsf 6y ago
  Yes, you are in debt. Depending on your bank, your history with the bank, and the amount owed, it can go from nothing, to triggering a penalty, or an immediate freeze of all your bank accounts (across all banks/institutions in the country). The whole freeze happened to me (not my fault), it is pretty impressive. All debit/credit cards are rejected immediately, you better have some spare... and visit the bank that issued the asset freeze and fix it. So, yeah, you learn quickly to not over spend.
- josh3736 6y ago
  Not sure where you got your APR info, but it is not correct. CSR's advertised APR[1] is 17% to 24%, which of course varies based on your credit history. I checked my own account and see my CSR's APR is 16%, and it's sometimes possible to get a decrease if you ask. (To compare, I also have a Freedom, the mid-tier card, at 15% and the Amazon card at 18.25%.) I also have an Amex, which is nominally a charge card, but they are now functionally no different than a credit card. It has an 18.25% APR for the "Pay Over Time" balance. Of course, none of this really matters if you're using the cards responsibly, because you pay the statement balance in full every month. The grace period means there is no interest at all. No credit card has a good interest rate (outside of promos), and if you need to borrow money, there are better ways of doing it. Any credit card should be treated like a charge card or debit card. Don't spend more than you have, put it on auto pay, zero interest is charged, your bank account is debited once a month, and along the way you collect lucrative rewards and get better fraud protection and fringe benefits. (Admittedly, this all assumes that you can qualify for a decent card and can use it responsibly, which sadly the majority of Americans cannot.) 1. https://applynow.chase.com/FlexAppWeb/pricing.do?card=G3L2&page_type=appterms https://applynow.chase.com/FlexAppWeb/pricing.do?card=G3L2&p...

by llsf 6y ago

tyoma 6y ago

Wait, how are you responsible for poor card security? You are protected from more than $50 in liability by federal law, and more than $0 by virtually every issuers policy. More often than not, your issuer automatically detects and blocks fraudulent purchases.

Spooky23 6y ago
Overdrafts. It’s the first of the month and your mortgage and car payment is debited. Except some asshat drained your account and the overdraft exceeds your accounts limit. Eventually everything gets fixed, but you deal with a lot of stress and risk. There’s literally no reason to not carry a credit card and have the bank hold the risk.

loeg 6y ago

> but it is effectively debited at the end of the month only. So you have to pay in full at the end of the month. In the US, you've described "Charge Cards." Some of the cards American Express offers are charge cards. (I don't know of other vendors with such cards.)

splonk 6y ago
Diners Club, although they're a very small player. Some corporate cards as well, I believe. Possibly some of the niche cards targeted at people with very bad credit act this way as well. Basically the very large majority of consumers won't see a charge card besides AmEx.

nemothekid 6y ago

>I have never used a credit card when living in Europe, it was a debit card... but it is effectively debited at the end of the month only. So you have to pay in full at the end of the month. This is pretty much how the high tier credit cards work in the US (or atleast how the people who own them say they work). The CSR has some insane 28% APR, way higher than Chase's mid tier card. Amex's premium cards (Gold, Platinum) also work the same way. In your case, what happens when you don't have enough money at the end of the month? You are effectively in debt.

llsf 6y ago
Yes, you are in debt. Depending on your bank, your history with the bank, and the amount owed, it can go from nothing, to triggering a penalty, or an immediate freeze of all your bank accounts (across all banks/institutions in the country). The whole freeze happened to me (not my fault), it is pretty impressive. All debit/credit cards are rejected immediately, you better have some spare... and visit the bank that issued the asset freeze and fix it. So, yeah, you learn quickly to not over spend.
josh3736 6y ago
Not sure where you got your APR info, but it is not correct. CSR's advertised APR[1] is 17% to 24%, which of course varies based on your credit history. I checked my own account and see my CSR's APR is 16%, and it's sometimes possible to get a decrease if you ask. (To compare, I also have a Freedom, the mid-tier card, at 15% and the Amazon card at 18.25%.) I also have an Amex, which is nominally a charge card, but they are now functionally no different than a credit card. It has an 18.25% APR for the "Pay Over Time" balance. Of course, none of this really matters if you're using the cards responsibly, because you pay the statement balance in full every month. The grace period means there is no interest at all. No credit card has a good interest rate (outside of promos), and if you need to borrow money, there are better ways of doing it. Any credit card should be treated like a charge card or debit card. Don't spend more than you have, put it on auto pay, zero interest is charged, your bank account is debited once a month, and along the way you collect lucrative rewards and get better fraud protection and fringe benefits. (Admittedly, this all assumes that you can qualify for a decent card and can use it responsibly, which sadly the majority of Americans cannot.) 1. https://applynow.chase.com/FlexAppWeb/pricing.do?card=G3L2&page_type=appterms https://applynow.chase.com/FlexAppWeb/pricing.do?card=G3L2&p...