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In Australia (Afterpay's home market), credit card merchant fees are tightly regulated (<1% for most transactions AFAIK), so 'cash-back' offers like the US don'

In Australia (Afterpay's home market), credit card merchant fees are tightly regulated (<1% for most transactions AFAIK), so 'cash-back' offers like the US don't exist. Airline/Frequent Flyer point conversions similarly got nerfed, so much so it's better to cycle cards (credit worthiness permitting) every year to get a point bonus up front (e.g 200K points for spending $X000 in the first 3 months) than trying to earn that amount.

systemvoltage 5y ago
That's not the main benefit of using a credit card. The primary benefit of a CC is decoupling it from your bank account - if there is an issue, CC company will fight the charge for you and almost always side on your side. I bought a pair of speakers costing $2500. I tried to reach to the company for a return but no one would answer. No phone, no email, nada. 1 month return deadline was coming up and I called American Express. Within literally 10 mins (no wait at all), I filed a claim and was done with it. 60 days later, I got the money back. Turns out that they couldn't reach them either. Credit cards are more consumer centric than merchant centric and they're a huge boon to otherwise rampant asshole behavior from merchants. I also run an online shop and its a pain in the neck when someome files a charge-back, we just consider it as part of the cost of doing business. In last 20 or so years of using an AMEX card, I've filed half a dozen charge backs. It's an amazing company, it's better than any other CC company in my opinion. They also have one of the highest fees and it shows why - their customer service is absolutely top notch - red carpet, the works.
- ec109685 5y ago
  That customer service is also paid for by the credit card fees they charge merchants in the United States.
- matkoniecz 5y ago
  Then why not us debit card? Chargebacks are also available and risk of ending with spiral of debt is removed. (Yes, it is a real risk. Yes I know that you and me are not going to e so stupid. But I am not trusting this belief.)
  - equinoxmist 5y ago
    Because at least if it goes wrong, the money being used isn't actually your money until you pay the CC bill. That $2500 is still sat in your account. Spiral of debt is only a risk if you have no discipline. For those of us that do have discipline, CC's are great.
  - didibus 5y ago
    In the US debit cards have terrible charge back, and even then, if the merchant doesn't follow through, you're the one who needs to fight for it, where as with a CC it'll be them doing the fighting.
  - refurb 5y ago
    If someone fraudulently or mistakenly charges my debit card $5,000, that's $5,000 gone from my bank account until I get it fixed. If someone charges $5,000 to my credit card in error, I've got 30+ days plus to resolve with zero financial impact to me. If it doesn't get resolved in that time, I have the option to not pay the bill (or that portion of the bill), knowing that if the error is fixed, the penalties and interest will be waived.
    - bserge 5y ago
      Have you experienced that? There's limits on charges on debit cards, usually ~2000 Euros. Credit cards are higher but then again they also have the credit limit and won't go beyond that in most cases.
      - refurb 5y ago
        I haven’t experienced it personally, but I know someone who used a debit card for their utilities on auto-pay. Gas company said they damage their meter so they replaced it and auto-debited their account for $2,500. They had to borrow money from friends until it got fixed and the money refunded.
    - matkoniecz 5y ago
      > If someone fraudulently or mistakenly charges my debit card $5,000 in my case payment will fail due to spending limits (though repeated small charges would go through)

systemvoltage 5y ago

That's not the main benefit of using a credit card. The primary benefit of a CC is decoupling it from your bank account - if there is an issue, CC company will fight the charge for you and almost always side on your side. I bought a pair of speakers costing $2500. I tried to reach to the company for a return but no one would answer. No phone, no email, nada. 1 month return deadline was coming up and I called American Express. Within literally 10 mins (no wait at all), I filed a claim and was done with it. 60 days later, I got the money back. Turns out that they couldn't reach them either. Credit cards are more consumer centric than merchant centric and they're a huge boon to otherwise rampant asshole behavior from merchants. I also run an online shop and its a pain in the neck when someome files a charge-back, we just consider it as part of the cost of doing business. In last 20 or so years of using an AMEX card, I've filed half a dozen charge backs. It's an amazing company, it's better than any other CC company in my opinion. They also have one of the highest fees and it shows why - their customer service is absolutely top notch - red carpet, the works.

ec109685 5y ago
That customer service is also paid for by the credit card fees they charge merchants in the United States.
matkoniecz 5y ago
Then why not us debit card? Chargebacks are also available and risk of ending with spiral of debt is removed. (Yes, it is a real risk. Yes I know that you and me are not going to e so stupid. But I am not trusting this belief.)
- equinoxmist 5y ago
  Because at least if it goes wrong, the money being used isn't actually your money until you pay the CC bill. That $2500 is still sat in your account. Spiral of debt is only a risk if you have no discipline. For those of us that do have discipline, CC's are great.
- didibus 5y ago
  In the US debit cards have terrible charge back, and even then, if the merchant doesn't follow through, you're the one who needs to fight for it, where as with a CC it'll be them doing the fighting.
- refurb 5y ago
  If someone fraudulently or mistakenly charges my debit card $5,000, that's $5,000 gone from my bank account until I get it fixed. If someone charges $5,000 to my credit card in error, I've got 30+ days plus to resolve with zero financial impact to me. If it doesn't get resolved in that time, I have the option to not pay the bill (or that portion of the bill), knowing that if the error is fixed, the penalties and interest will be waived.
  - bserge 5y ago
    Have you experienced that? There's limits on charges on debit cards, usually ~2000 Euros. Credit cards are higher but then again they also have the credit limit and won't go beyond that in most cases.
    - refurb 5y ago
      I haven’t experienced it personally, but I know someone who used a debit card for their utilities on auto-pay. Gas company said they damage their meter so they replaced it and auto-debited their account for $2,500. They had to borrow money from friends until it got fixed and the money refunded.
  - matkoniecz 5y ago
    > If someone fraudulently or mistakenly charges my debit card $5,000 in my case payment will fail due to spending limits (though repeated small charges would go through)