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Monday, November 10, 2008

What is the difference between Credit card and monetary?

Although the monetary and credit cards are closely linked, but there is, after all, the essence of the difference between:

1. First of all, monetary is to act as a medium of general equivalent in exchange, the measure of value function is the most basic functions of the currency, and credit card is different, it is not equivalent, there is no measure of value, but only a means of value transfer, is the currency of the carrier;

2. Secondly, as the liquidity, currency and commodities in the buying and selling between those who campaign for transposition, and credit cards are always a part of the masters of the media as a commodity to complete the transaction, the value of the transfer, credit card did not transfer, It is still the currency of the media and the transposition of the movement of goods;

3. Again, is an advanced credit card payment, which is the monetary means to pay for the expansion and extension of the limitations of monetary breakthrough may be in one place or many places for its holder to complete the transaction, In the credit line with banks to a greater or lesser amount of money in exchange for cardholders to pay the required goods and services. In the same card services, it means the currency of payment in time and space has expanded significantly;

4. Finally, the layout of the card have the means to store it for customer service, enforced by a mere role of passbook savings;

5. It will not be a world currency. Although the credit card to break the frontiers in the international community widely used, but it does not have a measure of value, it is still the transfer of currency, the currency in the implementation of its functions, the currency of the world continues to be a means of payment.

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