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As a consumer, I use credit cards almost exclusively. I pay the balance every month. I do this because: 1) don’t like carrying cash 2) like the security of n
by prepend 3y ago
As a consumer, I use credit cards almost exclusively. I pay the balance every month.
I do this because:
1) don’t like carrying cash
2) like the security of never giving merchants direct access to my bank
3) chargeback in rare times I need it
4) don’t like having to worry about overdrawing checking
5) benefits like insurance, warranty
Basically it’s a useful buffer. I don’t think I’d pay 3% extra everywhere for the privilege, but since it’s usually baked in, I like it.
So I don’t think they are “parasites” but I think there’s a discussion around whether their fees are worth it for merchants.
- lxgr 3y agoThere is no reason you can’t have all of these on a debit card, other than maybe 4. The fact that only credit and not debit cards provide them is an artifact of how the market has grown, not economic necessity. And for 4, why should overdraft fees/interest actually be socialized to literally everybody buying things (since interchange, which pays for them, gets baked into prices in the end)?
- Ferret7446 3y ago> There is no reason you can’t have all of these on a debit card I can think of a big reason; you'd have to charge a ~3% fee per transaction to pay for it. Likely more since interest payments aren't helping to offset it.
- prepend 3y agoIf someone steals my debit card and spends all my money, it’s a pain in my rear end and disrupts stuff. They can steal my credit card all day long and I don’t care. I’m not talking about what should and shouldn’t be in a better world. I’m just using tools available to me.