Final answer:
A debit card is an instruction to transfer money from a bank account to a seller immediately, while a credit card is considered a short-term loan from the credit card company. Smart cards allow users to store a certain value of money and make purchases.
Step-by-step explanation:
A debit card, like a check, is an instruction to the user's bank to transfer money directly and immediately from your bank account to the seller. It is important to note that in our definition of money, it is checkable deposits that are money, not the paper check or the debit card.
Although you can make a purchase with a credit card, the financial institution does not consider it money but rather a short term loan from the credit card company to you.
When you make a credit card purchase, the credit card company immediately transfers money from its checking account to the seller, and at the end of the month, the credit card company sends you a bill for what you have charged that month.
Until you pay the credit card bill, you have effectively borrowed money from the credit card company. With a smart card, you can store a certain value of money on the card and then use the card to make purchases.