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I really never got credit cards, I didn't even own one until I had to make some purchases on American websites. In the Netherlands and most EU countries we all

I really never got credit cards, I didn't even own one until I had to make some purchases on American websites. In the Netherlands and most EU countries we all have debit cards protected by a pin, and all transactions are basically instant and increasingly contactless. As for purchasing stuff on-line we have a system called 'iDeal' which is supported by every bank. You just go the the checkout, scan a QR code with your banking app, accept the purchase in the app and it's done. It still comes to me as a surprise that in a connected world like today you can make a purchase in someone's name by just knowing a bunch of numbers on a piece of plastic, no verification needed.

ars 6y ago
You can make a purchase on an American website with a debit card. The point of the credit card is to borrow money and pay it back later. That's all. Most Americans have both Debit and Credit cards and will switch between them based on their financial need. > You just go the the checkout, scan a QR code with your banking app, accept the purchase in the app and it's done. And those people who don't have data for their phone? > that in a connected world like today Not everyone is connected.
- Denvercoder9 6y ago
  > And those people who don't have data for their phone? It works fine over wifi. For those without internet at all, well, then you can't order anything online either ;) (I know of at least one bank, but there are probably more, that also offers a (free) hardware device for people without a smartphone.)
thewebcount 6y ago
> You just go the the checkout, scan a QR code with your banking app Ugh, no thank you. I just wave my watch over the device and I'm done. Nothing to take out, no apps involved.
- innocenat 6y ago
  For online purchase?
  - thewebcount 6y ago
    Actually, yes. I use ApplePay whenever possible. It pops up a dialog that allows me to choose the email and physical addresses I want to expose, and the card to use, and then I either use the fingerprint scanner on my laptop to confirm, or double-click the button on my watch.
dudul 6y ago
Credit cards vs debit cards has nothing to do with security. Both debit and credit cards have chips, both have instant and contactless transactions, both can be setup up for 2FA with your bank when you purchase online (not all banks may offer this feature, but a lot do). The main difference is that credit cards allow you to carry a balance. Why use a credit card? Because most banks offer cash back deals when you do. I get a 3% discount on all my transactions when I use my CC, some get points to travel for free. Credit cards help you build a good credit score to get better interest rates on loans and mortgages.
- Denvercoder9 6y ago
  > Because most banks offer cash back deals when you do. I get a 3% discount on all my transactions when I use my CC, some get points to travel for free. That's an American thing, it's non-existant in Europe (at least in The Netherlands). Also, in the end it's not a discount, it's just your own money that you get back in an inconvenient way. It's paid from the creditcard fees that retailers pay, which pass it on to you (either directly as a fee, or indirectly as higher prices). The whole idea of e.g. paying less for gas when you pay in cash is insane in most of Europe. > Credit cards help you build a good credit score to get better interest rates on loans and mortgages. Credit scores are another American thing that seem insane to most Europeans.
  - dudul 6y ago
    Yes, and the article is about American CC. Why are credits scores insane? How do lenders evaluate if it's risky or not to issue a loan to an individual? How do you reward individuals who manage their finance correctly?
    - kazen44 6y ago
      Lending seems to be far less of a thing in most european countries. Not taking into account bussiness loands, the only loan most people take on in their lives is a mortage. (Which has a lot of requirements). Also, a "credit score" kind of system does exist in most countries, but it is usually an administrative record kept by a goverment agency which blacklists you from taking out more loans if you cannot pay them. It seems the system is mostly based around a negative feedback loop. (Punishing people who haven't payed) instead of a positive one.
djhworld 6y ago
Credit cards in the UK offer section 75 protection, so are definitely worth it for purchases over £100 https://www.moneysavingexpert.com/reclaim/section75-protect-your-purchases/ https://www.moneysavingexpert.com/reclaim/section75-protect-... I use my credit card for all my purchases and pay the balance off in full every month, mainly for the rewards, but that peace of mind for big purchases is great too.

ars 6y ago

You can make a purchase on an American website with a debit card. The point of the credit card is to borrow money and pay it back later. That's all. Most Americans have both Debit and Credit cards and will switch between them based on their financial need. > You just go the the checkout, scan a QR code with your banking app, accept the purchase in the app and it's done. And those people who don't have data for their phone? > that in a connected world like today Not everyone is connected.

Denvercoder9 6y ago
> And those people who don't have data for their phone? It works fine over wifi. For those without internet at all, well, then you can't order anything online either ;) (I know of at least one bank, but there are probably more, that also offers a (free) hardware device for people without a smartphone.)

thewebcount 6y ago

> You just go the the checkout, scan a QR code with your banking app Ugh, no thank you. I just wave my watch over the device and I'm done. Nothing to take out, no apps involved.

innocenat 6y ago
For online purchase?
- thewebcount 6y ago
  Actually, yes. I use ApplePay whenever possible. It pops up a dialog that allows me to choose the email and physical addresses I want to expose, and the card to use, and then I either use the fingerprint scanner on my laptop to confirm, or double-click the button on my watch.

dudul 6y ago

Credit cards vs debit cards has nothing to do with security. Both debit and credit cards have chips, both have instant and contactless transactions, both can be setup up for 2FA with your bank when you purchase online (not all banks may offer this feature, but a lot do). The main difference is that credit cards allow you to carry a balance. Why use a credit card? Because most banks offer cash back deals when you do. I get a 3% discount on all my transactions when I use my CC, some get points to travel for free. Credit cards help you build a good credit score to get better interest rates on loans and mortgages.

Denvercoder9 6y ago
> Because most banks offer cash back deals when you do. I get a 3% discount on all my transactions when I use my CC, some get points to travel for free. That's an American thing, it's non-existant in Europe (at least in The Netherlands). Also, in the end it's not a discount, it's just your own money that you get back in an inconvenient way. It's paid from the creditcard fees that retailers pay, which pass it on to you (either directly as a fee, or indirectly as higher prices). The whole idea of e.g. paying less for gas when you pay in cash is insane in most of Europe. > Credit cards help you build a good credit score to get better interest rates on loans and mortgages. Credit scores are another American thing that seem insane to most Europeans.
- dudul 6y ago
  Yes, and the article is about American CC. Why are credits scores insane? How do lenders evaluate if it's risky or not to issue a loan to an individual? How do you reward individuals who manage their finance correctly?
  - kazen44 6y ago
    Lending seems to be far less of a thing in most european countries. Not taking into account bussiness loands, the only loan most people take on in their lives is a mortage. (Which has a lot of requirements). Also, a "credit score" kind of system does exist in most countries, but it is usually an administrative record kept by a goverment agency which blacklists you from taking out more loans if you cannot pay them. It seems the system is mostly based around a negative feedback loop. (Punishing people who haven't payed) instead of a positive one.

djhworld 6y ago

Credit cards in the UK offer section 75 protection, so are definitely worth it for purchases over £100 https://www.moneysavingexpert.com/reclaim/section75-protect-your-purchases/ https://www.moneysavingexpert.com/reclaim/section75-protect-... I use my credit card for all my purchases and pay the balance off in full every month, mainly for the rewards, but that peace of mind for big purchases is great too.