3 ms·

It's because payment processors basically calculated that people would be less likely to use their credit card if they had the hassle of entering a PIN (or god

It's because payment processors basically calculated that people would be less likely to use their credit card if they had the hassle of entering a PIN (or god forbid some rotating code thing!). They're willing to put up with slightly more fraud for the increased CC use, as Americans are much more prone to use their card as a financing vehicle, carrying revolving debt at a usurious interest rate. Every European I know pays their card off every month, so this tactic is much less lucrative; better to increase security in that case. It is pretty funny when I use my US credit card abroad and the payment terminal spits out a receipt I have to sign. So many confused people on restaurant waitstaff xD

lucideer 4y ago
> the hassle Given the snails-pace rollout of contactless in the US, this seems like conjecture. Paying is much less hassle in Europe in my experience - having to sign paper, waiting for your card to be brought back? This is hassle.
sofixa 4y ago
> Every European I know pays their card off every month, so this tactic is much less lucrative; better to increase security in that case. What do you mean? Credit cards are incredibly rare in European countries, and all that i know of don't have any option outside of paying it in full at the end of the month.
- Symbiote 4y ago
  Don't generalize across Europe based on narrow experience in one or two. It's easy to see there's a huge variance in people with a credit card. Even the 5% rate in Albania is hardly "incredibly rare": https://www.statista.com/statistics/968220/credit-card-ownership-rate-european-countries/ https://www.statista.com/statistics/968220/credit-card-owner... Picking the lowest EU country on that list (Lithuania, 12%), the first bank I found has a 45 day interest-free credit period, and a 14-17% interest rate if you borrow for longer: https://www.seb.lt/en/private/cards/mastercard-standard https://www.seb.lt/en/private/cards/mastercard-standard
- lucideer 4y ago
  I live in Europe, have two credit cards (& know many people with CCs), and there's no requirement to pay it off each month. Possibly a per-country thing?
- kube-system 4y ago
  Cards that are required to be paid off each month aren't credit cards by definition, because they aren't extending any credit. Those are charge cards.
  - sofixa 4y ago
    I can assure you that my American Express is marked as a credit card everywhere, even though it autopays itself automatically at the end of each month.
    - deleted 4y ago
      [deleted]
    - kube-system 4y ago
      You may want to review the fine print. AMEX offers both types of card, but "credit card" and "charge card" (sometimes "purchasing card") are meaningful financial terms. AMEX used to offer primarily charge cards back in the day, but they've changed many of their cards to credit cards these days.
      - sofixa 4y ago
        It literally says credit card on their website, app and the card itself, so I don't think Amex France care about the distinction.
        kube-system 4y ago
        Does your particular card offer credit as a feature? This is how some of the US cards are, they sort of position the credit feature more like an "option" compared to what other issuers do. Because it is offered at all, it is a credit card, even if you pay the full balance normally. FWIW, all the cards I see on their French site are described as: > Une carte de paiement internationale à débit https://www.americanexpress.com/fr/carte-de-paiement/types-cartes/cartes-proprietaires/ https://www.americanexpress.com/fr/carte-de-paiement/types-c... and a search for 'crédit' returns no results.

lucideer 4y ago

> the hassle Given the snails-pace rollout of contactless in the US, this seems like conjecture. Paying is much less hassle in Europe in my experience - having to sign paper, waiting for your card to be brought back? This is hassle.

sofixa 4y ago

> Every European I know pays their card off every month, so this tactic is much less lucrative; better to increase security in that case. What do you mean? Credit cards are incredibly rare in European countries, and all that i know of don't have any option outside of paying it in full at the end of the month.

Symbiote 4y ago
Don't generalize across Europe based on narrow experience in one or two. It's easy to see there's a huge variance in people with a credit card. Even the 5% rate in Albania is hardly "incredibly rare": https://www.statista.com/statistics/968220/credit-card-ownership-rate-european-countries/ https://www.statista.com/statistics/968220/credit-card-owner... Picking the lowest EU country on that list (Lithuania, 12%), the first bank I found has a 45 day interest-free credit period, and a 14-17% interest rate if you borrow for longer: https://www.seb.lt/en/private/cards/mastercard-standard https://www.seb.lt/en/private/cards/mastercard-standard
lucideer 4y ago
I live in Europe, have two credit cards (& know many people with CCs), and there's no requirement to pay it off each month. Possibly a per-country thing?
kube-system 4y ago
Cards that are required to be paid off each month aren't credit cards by definition, because they aren't extending any credit. Those are charge cards.
- sofixa 4y ago
  I can assure you that my American Express is marked as a credit card everywhere, even though it autopays itself automatically at the end of each month.
  - deleted 4y ago
    [deleted]
  - kube-system 4y ago
    You may want to review the fine print. AMEX offers both types of card, but "credit card" and "charge card" (sometimes "purchasing card") are meaningful financial terms. AMEX used to offer primarily charge cards back in the day, but they've changed many of their cards to credit cards these days.
    - sofixa 4y ago
      It literally says credit card on their website, app and the card itself, so I don't think Amex France care about the distinction.
      - kube-system 4y ago
        Does your particular card offer credit as a feature? This is how some of the US cards are, they sort of position the credit feature more like an "option" compared to what other issuers do. Because it is offered at all, it is a credit card, even if you pay the full balance normally. FWIW, all the cards I see on their French site are described as: > Une carte de paiement internationale à débit https://www.americanexpress.com/fr/carte-de-paiement/types-cartes/cartes-proprietaires/ https://www.americanexpress.com/fr/carte-de-paiement/types-c... and a search for 'crédit' returns no results.