5 ms·

In Germany (and most of europe) credit cards arent used very much. I can wire transfer money inside the country for free, i can pay in alot of Online Shops by d

by kayoone 15y ago

In Germany (and most of europe) credit cards arent used very much. I can wire transfer money inside the country for free, i can pay in alot of Online Shops by direct debit who get the money directly from my bank account. In stores i use a card associated with my bank account (not a credit card) to pay which also lets the merchant get the money directly from my bank account. I am suprised that the US doesnt have a similar system, no wonder everyone uses credit cards there. Thats also why i think Square wouldnt be very successfull over here.

ebzlo 15y ago
We can use debit cards here as well, the reason we generally don't are usually because of the security and benefits (mileage) you get from using a credit card.
- pedrolll 15y ago
  We don't have to use any kind of cards in Finland, and I think the situation is the same in Germany. I can directly pay a merchant and the money is transferred from my bank account without having a card at all. I can use a credit card as well, or a debit card, but there really is no point to use them here. It's surprising how far behind the U.S. is in this matter.
  - jrockway 15y ago
    Why do you say "far behind"? I can go into pretty much any store in the world and bust out a piece of plastic to pay for the purchase. And I get frequent flyer miles.
    - vidarh 15y ago
      Presumably because this article presents Dwolla as something new and fantastic, when it's something that's available in most European countries in one form or another right now. (and of course the experience from Europe is that while it competes with debit and credit cards, it kills neither)
    - ahoyhere 15y ago
      Have you traveled much? In lots of other countries, few stores take credit. Examples I've been to: Austria, Germany, Portugal, New Zealand… strangely enough the hot "latin" countries of Europe love credit cards, so it's easy peasy in Italy or Portugal. Also Finland, thankfully, because the amount of money you'd have to carry there'd be ridiculous.
    - yxhuvud 15y ago
      So can my debit card because it says VISA on it.
lucasjung 15y ago
I use my credit card for almost everything. Before I explain why, it's important to state that I pay my balances in full every month. Anyone who has a hard time doing so should not be using credit cards. There are three reasons why I use my credit card so much (in order of importance to me): 1: It makes my finances much, much easier to manage. If I were using a debit card, I would have to track every transaction to the penny throughout the month in order to avoid overdrafts. Instead, I just keep a rough mental tally of my expenditures to make sure that I'm not living beyond my means. If my spending happens to get front-loaded on any particular month, no big deal: I've got another paycheck coming before the bill is due at the end of the month. With a debit card, I would have to manage my spending by pay period (twice a month) rather than billing cycle (once a month). Also, if I did happen to spend a little bit too much by accident, I'm looking at a few dollars (possibly even just a few cents) in finance charges, as opposed to a $20+ overdraft fee on every subsequent transaction. 2: I have a rewards credit card, so everything I buy gets me points. If you aren't using a rewards credit card, you're helping to pay for my rewards: the credit card companies generally charge the merchants higher transaction fees for purchases made with rewards cards (otherwise they would lose money on people like me who don't carry a balance). Merchants pass those costs on to customers by raising prices slightly. If you're not using a rewards card, you're paying those higher prices without reaping the benefits. Some merchants charge lower prices for cash, in which case I will usually pay cash because the savings are worth more than the points. 3: Because I pay my balance in full each month, I'm getting an interest-free loan from my bank each month. That money sits in my bank account accruing interest for anywhere from 1 to 30 days (depending on when I make the purchase). With interest rates as low as they currently are, I'm only making a few cents each month this way, but that's still money I wouldn't otherwise have. How many of these reasons would also apply in Europe? I know that #1 does, but what about #2 and #3? There are plenty of reasons for not using credit cards, which I didn't really get into, but are there reasons that apply in Europe which don't apply in the US?
- wiredfool 15y ago
  All that and #4: Consumer Protection. A few years back, I had plane international tickets booked on Zoom. They went out of business between the buying and the flying. With a credit card, that was Visa's problem. If it had been a debit card, it would have been my $3000 problem, as customers were unsecured creditors.
matwood 15y ago
The US has debit cards. These act exactly like the card you describe. The problem with debit cards is that the money leaves your account immediately. I prefer having the CC buffer for when (notice not IF) the card number is stolen.
nickik 15y ago
Yes true. I always wonderd why americans used these stupid credit cards all the time. We a better System atm but we should not relatx. They need to start making paying on the internet easier, Credit Cards and Paypal get alot of money by offering shitty servises. The Banks should get into this field and make it easy, safe and free.
rmc 15y ago
Depends. In Ireland, credit cards are popular due to the main debit card not being accepted a lot abroad, since it's a small country, with a large economy next door that speaks the same language, it's common to buy things online from the UK, and so you'll need a credit card.
anonymous 15y ago
A lot of us are actually using "virtual credit cards". They are like debit cards tied to a secondary account. You transfer money to said secondary account through the bank's webpage and then the credit-but-it's-actually-debit card is used to draw directly from it. This way, when you give your "credit" card online, even if it gets stolen, your main account is left unaffected.

by kayoone 15y ago

ebzlo 15y ago

We can use debit cards here as well, the reason we generally don't are usually because of the security and benefits (mileage) you get from using a credit card.

pedrolll 15y ago
We don't have to use any kind of cards in Finland, and I think the situation is the same in Germany. I can directly pay a merchant and the money is transferred from my bank account without having a card at all. I can use a credit card as well, or a debit card, but there really is no point to use them here. It's surprising how far behind the U.S. is in this matter.
- jrockway 15y ago
  Why do you say "far behind"? I can go into pretty much any store in the world and bust out a piece of plastic to pay for the purchase. And I get frequent flyer miles.
  - vidarh 15y ago
    Presumably because this article presents Dwolla as something new and fantastic, when it's something that's available in most European countries in one form or another right now. (and of course the experience from Europe is that while it competes with debit and credit cards, it kills neither)
  - ahoyhere 15y ago
    Have you traveled much? In lots of other countries, few stores take credit. Examples I've been to: Austria, Germany, Portugal, New Zealand… strangely enough the hot "latin" countries of Europe love credit cards, so it's easy peasy in Italy or Portugal. Also Finland, thankfully, because the amount of money you'd have to carry there'd be ridiculous.
  - yxhuvud 15y ago
    So can my debit card because it says VISA on it.

lucasjung 15y ago

I use my credit card for almost everything. Before I explain why, it's important to state that I pay my balances in full every month. Anyone who has a hard time doing so should not be using credit cards. There are three reasons why I use my credit card so much (in order of importance to me): 1: It makes my finances much, much easier to manage. If I were using a debit card, I would have to track every transaction to the penny throughout the month in order to avoid overdrafts. Instead, I just keep a rough mental tally of my expenditures to make sure that I'm not living beyond my means. If my spending happens to get front-loaded on any particular month, no big deal: I've got another paycheck coming before the bill is due at the end of the month. With a debit card, I would have to manage my spending by pay period (twice a month) rather than billing cycle (once a month). Also, if I did happen to spend a little bit too much by accident, I'm looking at a few dollars (possibly even just a few cents) in finance charges, as opposed to a $20+ overdraft fee on every subsequent transaction. 2: I have a rewards credit card, so everything I buy gets me points. If you aren't using a rewards credit card, you're helping to pay for my rewards: the credit card companies generally charge the merchants higher transaction fees for purchases made with rewards cards (otherwise they would lose money on people like me who don't carry a balance). Merchants pass those costs on to customers by raising prices slightly. If you're not using a rewards card, you're paying those higher prices without reaping the benefits. Some merchants charge lower prices for cash, in which case I will usually pay cash because the savings are worth more than the points. 3: Because I pay my balance in full each month, I'm getting an interest-free loan from my bank each month. That money sits in my bank account accruing interest for anywhere from 1 to 30 days (depending on when I make the purchase). With interest rates as low as they currently are, I'm only making a few cents each month this way, but that's still money I wouldn't otherwise have. How many of these reasons would also apply in Europe? I know that #1 does, but what about #2 and #3? There are plenty of reasons for not using credit cards, which I didn't really get into, but are there reasons that apply in Europe which don't apply in the US?

wiredfool 15y ago
All that and #4: Consumer Protection. A few years back, I had plane international tickets booked on Zoom. They went out of business between the buying and the flying. With a credit card, that was Visa's problem. If it had been a debit card, it would have been my $3000 problem, as customers were unsecured creditors.

matwood 15y ago

The US has debit cards. These act exactly like the card you describe. The problem with debit cards is that the money leaves your account immediately. I prefer having the CC buffer for when (notice not IF) the card number is stolen.

nickik 15y ago

Yes true. I always wonderd why americans used these stupid credit cards all the time. We a better System atm but we should not relatx. They need to start making paying on the internet easier, Credit Cards and Paypal get alot of money by offering shitty servises. The Banks should get into this field and make it easy, safe and free.

rmc 15y ago

Depends. In Ireland, credit cards are popular due to the main debit card not being accepted a lot abroad, since it's a small country, with a large economy next door that speaks the same language, it's common to buy things online from the UK, and so you'll need a credit card.

anonymous 15y ago

A lot of us are actually using "virtual credit cards". They are like debit cards tied to a secondary account. You transfer money to said secondary account through the bank's webpage and then the credit-but-it's-actually-debit card is used to draw directly from it. This way, when you give your "credit" card online, even if it gets stolen, your main account is left unaffected.