Final answer:
The use of a credit or debit card in a retail store through a card reader is an example of a Point of Sale (POS) electronic banking service. Debit cards facilitate the transfer of funds from a bank account, while credit cards act as short-term loans from the card issuer.
Step-by-step explanation:
When an individual purchases merchandise in a retail store using a credit or debit card which they insert or swipe through a magnetic card reader, they are using the Point of Sale (POS) electronic banking service. Debit cards, which are linked to the holder's bank account, allow for the direct and immediate transfer of money from the account to the seller. Credit cards also facilitate a similar immediate transfer during a purchase, but the money comes from the credit card company, not the individual's bank account. Therefore, the individual is effectively taking a short-term loan from the company until the bill is paid.
In the definition of money, it's checkable deposits that are considered actual money, not the physical debit card or credit card, which are simply mediums for instructing a bank to make a transfer of existing funds or, in the case of credit cards, extending a credit line.