Re:Credit Card Debt Collection
by incongruity on Wednesday September 13, 2023 @09:10AM
(#37496271)
It’s so severe that even if they improved the terms, nobody would use them because US debit cards' reputation is tainted.
“According to the 2019 Federal Reserve Payments Study1, “Debit cards, including both prepaid and non-prepaid, were used almost twice as often as credit cards in 2018, but the value of credit card payments exceeded the value of debit card payments by almost 30%.”
In Visa’s Operational Performance Data4 report for the three months ending on Dec. 31, 2020, it reports $741 billion in U.S. debit transaction volume, a 17.4% increase over the previous year. It compares to $542 billion in credit card volume.
Debit cards in the US are widely used.
Re:Credit Card Debt Collection
by SoftTalker on Wednesday September 13, 2023 @11:28AM
(#37498074)
You need moderately good credit to get a credit card.
You only need a bank account to get a debit card. The bar is much lower.
And if you're including prepaid cards, those are handed out like candy for promotional purposes, as gifts, etc.
The terms on credit cards are expensive for issuers, so when they came out with debit cards they issued them with terms that are much more favorable to issuers. Its so severe that even if they improved the terms, nobody would use them because US debit cards' reputation is tainted.
Europe has much stronger consumer protections, so I can only assume EU debit cards dont share the disadvantages of US debit cards.