This is a flawed view of the American system.
Credit and Debit cards are different things. Debit cards are the European style 'put in a pin and money is debited directly from your bank checking account'.
Credit cards are a revolving line of credit from a bank - you're spending against the LOC, and settle up on a monthly basis (to some extent - there's interest and pay-over-time involved in most as well).
The difference in accounts: banks offer substantially higher (although, basically still really low due to todays market) interest on money sitting in savings accounts, and restrict the use and availability of that money. Banks backed by the Federal reserve have to maintain a minimum ratio of deposited money to loans, and these restrictions/incentives are how they keep those in line and stay legal.
And for what it's worth, 99% of my spending is on a credit card, which I pay off monthly. I can't remember the last time I used cash or paper checks.
We also have many different ways to transfer money around, etc. using apps and things.
Credit and Debit cards are different things. Debit cards are the European style 'put in a pin and money is debited directly from your bank checking account'. Credit cards are a revolving line of credit from a bank - you're spending against the LOC, and settle up on a monthly basis (to some extent - there's interest and pay-over-time involved in most as well).
The difference in accounts: banks offer substantially higher (although, basically still really low due to todays market) interest on money sitting in savings accounts, and restrict the use and availability of that money. Banks backed by the Federal reserve have to maintain a minimum ratio of deposited money to loans, and these restrictions/incentives are how they keep those in line and stay legal.
And for what it's worth, 99% of my spending is on a credit card, which I pay off monthly. I can't remember the last time I used cash or paper checks.
We also have many different ways to transfer money around, etc. using apps and things.