Cambodians and credit cards

by **Pu Li** » Wed Jan 03, 2018 1:59 am

None of this really matters.

If you don't have Alipay, UnionPay or WeChat wallet in a years time, you'll all starve to death.

by **PSD_Kiwi** » Tue Jan 02, 2018 5:20 pm

ផោមក្លិនស្អុយ wrote:BTW just re-read my original post and I did type Debit when I meant credit.
I won’t go back & edit.

Thank you!

by **ផោមក្លិនស្អុយ** » Tue Jan 02, 2018 4:51 pm

BTW just re-read my original post and I did type Debit when I meant credit.
I won’t go back & edit.

by **ផោមក្លិនស្អុយ** » Tue Jan 02, 2018 4:47 pm

PSD_Kiwi wrote:If you understand then use the same terminology used by the banks... you wrote debit card, but were talking about a credit card (Cambodian style cc). You said that in order to have a debit card you had to maintain a certain balance, which is incorrect...don’t get it twisted homie

V12, apologies, fixed

My point is - and I thought it was clear - that a Cambodian credit card is not a credit card as no credit is offered. It is in effect a debit card.
You need to maintain a certain balance in a sister account. The ‘credit card account’ gets debited with every purchase to an increasing negative balance. Then at statement date you clear all or part of the balance. Al the while you have several grand sitting in another account as guarantee!

Why would I use the same terminology if said terminology is wrong?
Do you say ‘Happy Merry Christmas?’

I can’t be bothered going back through my posts to check, but if I typed the wrong word then perhaps I have added to confusion...

If you like i’ll lend you $50 as long as I have $50 of your money in my wallet at all times.

by **billythekid** » Tue Jan 02, 2018 4:32 pm

Since 2007 one of my banks in Cambodia issued both major "Cards" for me. They asked me for my own safety to set limits for the card usage, which I did and which is more than enough for my monthly expenses. I do not care whether one calls them a "Credit- or Debit- or Charge" Card as long as I can use them all-over the world without problems and so far I never had one. I get a monthly statement and have authorized the bank to debit the full monthly Card amount to my corresponding account with them. They have never asked me to hold any amount in a fixed deposit with them nor have they blocked any amount or account of mine with them for the Cards.
I have used "Credit" cards since 1974 and "cheque cards" before. However I have never used any " Credit- or Debit- or Charge- nor an ATM" Card to withdraw cash. In addition of my Cards I carry sufficient cash for the rest of my travel spending. ATM Cards I do not like anyway. I know its old fashioned but thats me.
I am happy with my system even in early 2018 and wish any Card holder (Credit- or Debit- or Charge- or ATM) Card a healthy and satisfactory year 2018. However the name of this bank in question I will not tell you, its enough when I can enjoy their good service.

by **PSD_Kiwi** » Tue Jan 02, 2018 4:00 pm

If you understand then use the same terminology used by the banks... you wrote debit card, but were talking about a credit card (Cambodian style cc). You said that in order to have a debit card you had to maintain a certain balance, which is incorrect...don’t get it twisted homie

V12, apologies, fixed

by **ផោមក្លិនស្អុយ** » Tue Jan 02, 2018 2:04 pm

PSD_Kiwi wrote:
ផោមក្លិនស្អុយ wrote:
v12 wrote: As I understand it with several institutions here to have a card (debit card) you need to maintain a certain balance - maybe one or two grand - to guarantee that that card will work. It isn’t as you say ‘once the account goes below zero’

This is still a debit card but it is debit with a reserve - ie it ties up a lot of cash just to allow you to book a flight online.
No, you obviously don’t understand it...you are talking about a CREDIT card...not a DEBIT card. You do not need to maintain a certain balance with a debit card like you explained above, but you do with (most) Cambodian Credit cards.
.

I do understand.
It’s a terminology thing.
If you have to maintain a balance then it isn’t a credit card as there is no credit being advanced. It doesn’t matter what they call the product - if the offset position is always in the banks favour then it just isn’t a credit card. Maybe a charge card would be a better name.

It really depends on how much is required to be held on deposit. If it is equal to the credit limit then the bank have no exposure & little risk.

It is a dopey product set up to minimise risk to the bank.

by **v12** » Tue Jan 02, 2018 1:38 pm

Please PSD, revise your writing, it was not me who wrote the quoted part.

With "credit cards", it's even more complicated. There are more flavours: There is also a "charge card" with a monthly limit, where you have to deposit a pledge amount (usually something like 3 times the card limit) at the bank, issuing the card.

There are also pre-payed credit cards, where you put a certain amount on the card and can spent until the deposited amount is spent.

With a "credit card", you not have to pay off the whole spent amount, each month. Ie a long-term interest bearing loan.
With a "charge card" (with or without pledge sum), you have to pay off the whole spent amount, each month.Ie a very short-term loan, without having to pay interest. In the good days, you would get interest on the pledge amount.
With a "debit card", you can only spent, up to the limit what is on your account. No interest charged.

by **PSD_Kiwi** » Tue Jan 02, 2018 12:39 pm

ផោមក្លិនស្អុយ wrote: As I understand it with several institutions here to have a card (debit card) you need to maintain a certain balance - maybe one or two grand - to guarantee that that card will work. It isn’t as you say ‘once the account goes below zero’

This is still a debit card but it is debit with a reserve - ie it ties up a lot of cash just to allow you to book a flight online.

[/quote]

No, you obviously don’t understand it...you are talking about a CREDIT card...not a DEBIT card. You do not need to maintain a certain balance with a debit card like you explained above, but you do with (most) Cambodian Credit cards.

A debit card is essentially an ATM card with the added features of a Credit card, ie. can be used to make online payments, etc. With a debit card you can only spend what you have in your account.

Money spent on a credit card is essentially a loan from the financial institution, which you have to pay back. But in Cambodia, most banks require that the CC holder maintains the balance of the credit limit in a fixed acct. Your monthly credit card payments are not deducted from the balance held in a fixed account, you still have to pay it off monthly, the money held in a fixed acct cannot be touched by you while you still hold the active credit card, it is there as a safety measure for the financial institution if the card holder fails to pay the balance.

by **ផោមក្លិនស្អុយ** » Tue Jan 02, 2018 11:01 am

v12 wrote:
Most Cambodian "credit cards", are factually "debit cards", the amount you spent is direct written off your account, the moment your accounts goes below zero, the "debit card" stops working.

It would be a lot simple if you called them what they are instead of using the “‘s

A credit card is a credit card,
A debit card is a debit card.

As I understand it with several institutions here to have a card (debit card) you need to maintain a certain balance - maybe one or two grand - to guarantee that that card will work. It isn’t as you say ‘once the account goes below zero’

This is still a debit card but it is debit with a reserve - ie it ties up a lot of cash just to allow you to book a flight online.

by **v12** » Tue Jan 02, 2018 10:51 am

antiparasite wrote:
v12 wrote:My Canadia bank ATM card expired a few months ago. And the new one does have the Visa logo's on it, suggesting it's a credit card. TBH, I do think, it's a factual debit card with direct debit. I think, Visa provides the cards to Canadia bank, with the corresponding savings for the bank (And the customer footprint gain for Visa).

The usual "credit card", is effectively not a credit card, though a charge card, where you do have to pay the debit amount every month. Only once you don't pay every month and you start building up a debit status with the CC company, your card gets a credit status (or not, if you're not granted the debit status .....).

I don't like the Visa status for the ATM card, since it will be tempting for the in-laws, to start using their ATM card for shop spendings, they don't have the resources for and they run out of money, before new money comes in.
You must be American because these are people who struggle so hard to understand simple things.

Fortunately not, I am from a better continent.

antiparasite wrote:There is no such thing as the nonsense you wrote above about "building up a debit status with the CC company".

Apologies, should be "credit".

antiparasite wrote:It's simple and let me educate you: a credit card is linked to money loaned to you, thus the term "credit". A debit card is linked to money debited from a settlement account linked to that card. Debit and credit are different!
With a debit card, no credit is extended to you whilst with a credit card, you are using a credit line extended to you by a financial institution!

I'm so tired of Americans presenting themselves as intelligent when most of them seem to struggle with simple concepts!

Let me educate you: There are debit cards, charge cards and credit cards.

What people usually consider "credit cards", are "charge cards", which implies, you have to pay off the total each month. If you don't do so, you more or less automatically move to "credit card", and pay the corresponding high interest. If you don't get a credit limit, your card gets blocked.

Most Cambodian "credit cards", are factually "debit cards", the amount you spent is direct written off your account, the moment your accounts goes below zero, the "debit card" stops working.

by **antiparasite** » Tue Jan 02, 2018 10:22 am

v12 wrote:My Canadia bank ATM card expired a few months ago. And the new one does have the Visa logo's on it, suggesting it's a credit card. TBH, I do think, it's a factual debit card with direct debit. I think, Visa provides the cards to Canadia bank, with the corresponding savings for the bank (And the customer footprint gain for Visa).

The usual "credit card", is effectively not a credit card, though a charge card, where you do have to pay the debit amount every month. Only once you don't pay every month and you start building up a debit status with the CC company, your card gets a credit status (or not, if you're not granted the debit status .....).

I don't like the Visa status for the ATM card, since it will be tempting for the in-laws, to start using their ATM card for shop spendings, they don't have the resources for and they run out of money, before new money comes in.

You must be American because these are people who struggle so hard to understand simple things.

There is no such thing as the nonsense you wrote above about "building up a debit status with the CC company".

It's simple and let me educate you: a credit card is linked to money loaned to you, thus the term "credit". A debit card is linked to money debited from a settlement account linked to that card. Debit and credit are different!
With a debit card, no credit is extended to you whilst with a credit card, you are using a credit line extended to you by a financial institution!

I'm so tired of Americans presenting themselves as intelligent when most of them seem to struggle with simple concepts!

by **simon44** » Tue Jan 02, 2018 7:16 am

Slightly off-topic:

In 2012, I was teaching English in Myanmar to a group of young, intelligent adults. I finished the class and I asked if there were any general questions that they wanted to ask.

Their first question was 'What is a credit card?'

Their next question was 'What is an ATM?'

(There's another good story about me being filmed by local TV in Yangon using the first ATM ... it didn't work!!)

Now cards and ATMS are commonplace in Myanmar - the country is changing very fast.

by **sociopath** » Mon Jan 01, 2018 8:25 pm

yes 'tis once again the season to buck for an IMF bailout. and they are all bucking as hard as they can

Cambodians and credit cards

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