Final answer:
Electronic cash payments are made using computers over a network, and include methods like credit cards, debit cards, and smart cards. Credit cards represent short term loans, while debit cards transfer funds directly from your bank account, and smart cards store a prepaid value for transactions.
Step-by-step explanation:
The concept of electronic cash is to execute payment by using computers over a network.
This encompasses digital transactions that can be done via various methods such as credit cards, ATM cards, smart cards, and more. When you make a purchase with a credit card, it is not considered money but a short term loan from the credit card company to you.
The credit card company sends you a bill at the end of the billing cycle for the amount charged. A debit card works by transferring money directly from your bank account to the seller.
Lastly, a smart card stores a certain value of money and can be used for purchases up to that value. Although these forms of plastic money facilitate transactions, they do not increase the actual quantity of money in the economy.