Final answer:
A debit card is an instruction to transfer money directly from the user's bank account to the seller, representing real money unlike a credit card which is a short-term loan.
Smart cards store money for future purchases, and all forms of plastic money are part of a payment system that allows for economic transactions.
Step-by-step explanation:
For merchants that accept payments made by Visa, MasterCard, and other forms of plastic, it's crucial to understand how these payment systems operate.
A debit card, much like a check, is an instruction to the user's bank to transfer money directly and immediately from your bank account to the seller.
This form of payment is seamless and is considered 'real money' as it is tied directly to the funds available in the user's bank account.
When a debit card is utilized, it differs from a credit card in that a credit card represents a short-term loan from the credit card issuer to the buyer until the outstanding balance is paid.
On the other hand, a smart card allows for money to be stored on the card itself, which can then be used to make purchases.
Different forms of plastic money play unique roles within the broader framework of a payment system that facilitates the exchange of goods and services for monetary value.