April 16, Bucharest. Easter is a time of joy but also adds financial pressure on personal budgets. Therefore, it is essential to manage spending and payments carefully during this period. Credit cards, shopping cards, card payments both in Romania and abroad, as well as the risk of fraud, are just some of the topics discussed in the first episode of this season’s CSALB podcasts.

The guests featured in this discussion are Ioana Pârvu, Director of Cards and Payment Solutions at BRD Groupe Societe Generale, and Dorian Petrovici, Director of Cards, Projects, and Retail Data Analysis at Banca Transilvania. The discussion is moderated by Adrian Asoltanie, financial education trainer and author of the book “Honey, Where’s the Money?”

| PODCAST CSALB | https://www.youtube.com/watch?v=PoJl5BMzitU&t=159s

The fifth season of the CSALB Podcasts explores topics inspired by the types of negotiation requests consumers send to the Alternative Banking Dispute Resolution Center: cards and payments, bank loans, fraud, debt enforcement, court vs. alternative resolution, saving, and investing. This year, CSALB’s discussions bring together banking specialists, credit brokers, bailiffs, fraud prevention experts, and others. Debates are moderated by financial analysts, financial education lecturers, and respected economic journalists. Through these discussions, we aim to provide consumers with the necessary tools to manage and protect their finances in an unpredictable macroeconomic environment..

 Consumers should approach banks like they would a supermarket—choosing the financial products that best suit their financial health. In other words, start with your needs and find the banking product that meets them. Calibration and self-awareness are crucial because when you take out credit, you’re spending money from the future that doesn’t belong to you. That’s why how much and how you borrow matters—it should be manageable to repay. One common concern is the cost and interest. Credit cards are perceived as expensive financial tools with higher interest rates. But what are the differences between credit cards, debit cards, and shopping cards—and what should we know about this type of loan?

Credit cards differ from debit cards because they give consumers access to a credit line based on a creditworthiness assessment that indicates the consumer’s ability to repay. Debit cards are linked to current accounts funded by the customer’s own money. Shopping cards also provide access to a credit line—this is important to understand because you’re spending the bank’s money. Currently, credit and shopping cards come with attractive offers, especially during peak shopping seasons like this one.

Consumers can shift the perception that credit cards are expensive if they learn to use them correctly and keep costs at zero. If there’s a specific need, the credit line can be used during the grace period. If repaid within 45–60 days (depending on the bank), there is no cost. Another option is interest-free installments, which is the most appreciated feature of credit cards. It’s important to set installments (e.g., over 24 or 36 months) in a way that ensures easy repayment. A few key tips for consumers:

• If you only repay the minimum amount, you’ll be charged interest.
• If you pay the full amount each month, you benefit from zero interest. That’s why it’s essential to assess your repayment ability from the start and structure your installments accordingly.

If you need to make an urgent payment and withdraw cash from your credit card, you’ll pay interest from the moment of withdrawal. However, if you transfer the needed amount from your credit card to your debit card, you can repay the cash in up to 36 installments with more favorable interest. While interest on credit cards may hover around 25%, cash advances can be 10 percentage points lower—approaching the interest of a quick personal loan.

Credit cards are also extremely useful when traveling. We recommend paying by card in the card’s currency instead of withdrawing cash abroad. Even in Europe, where fees are similar to those in Romania, cash withdrawals may incur additional fees from the ATM-operating banks.

The card is the cornerstone of the relationship between the consumer and the bank—the first tool a customer should have with a payment provider. A card is not just a plastic item—it includes the internet banking app, which we like to call the “remote control” for your card. The pandemic accelerated the adoption of card payments. I remember always carrying cash while traveling—now, I don’t need it. However, we must distinguish between paying in local currency or in the card’s original currency (RON).

Today, cards are tailored to consumers’ financial needs and level of understanding. There are premium and standard cards, as well as products designed for children. We encourage children’s access to debit cards from as young as 8 to 14 years old. There are also co-branded cards that offer a range of benefits, where multiple companies work together to provide an ecosystem for consumers.

Additionally, merchants offer loyalty points and perks. Credit cards are often tied to loyalty programs. Moreover, payments made with credit cards are safer than bank transfers or debit card transactions. For example, in the case of a canceled flight, consumers can use chargeback to recover their money. When using a payment tool, the entire ecosystem—from bank to merchant—focuses on service delivery. If that service isn’t delivered, consumers can file a payment dispute. This is especially important in the era of online shopping.

Online fraud results in huge tech investments from banks to keep risks under control. Still, banks can’t always protect people lured by promises of fast money. Some websites allow card payments without verification—but these are usually for small amounts (under €30), considered low-risk. Each transaction has a risk score calculated by the bank. For instance, passwords may be skipped for subscriptions or recurring payments. Another case is when your card is saved in the app. If the merchant is trustworthy, we even encourage this practice because it simplifies payments. In general, the European payment environment is highly regulated. Strong Customer Authentication (SCA) greatly enhances payment safety.

Alexandru Păunescu, representative of the National Bank of Romania in CSALB’s Coordination Board: „In recent years, CSALB has become not only a mediator of financial disputes but also a platform for financial dialogue and education between consumers and banks. While in the past we focused on engaging top bank management, this year we start from consumers’ real needs, as seen in their requests to CSALB. With the help of banking professionals, we want to reduce the lack of information—which is often the root of consumers’ financial difficulties.

We’re going through an unpredictable period, economically and socially, due to ongoing economic and military conflicts. This makes it even more important that our financial choices and their implications are as clear and predictable as possible for our budgets. Only in this way can we mitigate the impact of external decisions beyond our control.

Since the beginning of this year, consumers have submitted over 1,000 negotiation requests to CSALB for banks and non-bank financial institutions. So far, 220 negotiations have taken place. Of the cases resolved amicably, the average consumer benefit is around €3,800 per case, compared to €3,000 for all of 2024”.

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  About CSALB: CSALB is an entity established following a European directive, offering free and quick mediation—under three months—between consumers and banks or non-bank financial institutions for ongoing contracts. Consumers from any Romanian county can submit requests to the Alternative Banking Dispute Resolution Center (CSALB) by filling out an online form on www.csalb.ro. If the bank agrees to enter negotiation, a conciliator is appointed. CSALB works with 16 of the top legal and financial experts in Romania. All cases are settled amicably, and the resulting agreement holds the legal power of a court decision.