Credit Card VS Electronic Payment

Credit cards were first conceived in 1887 by Edward Bellamy, who used the term in his novel "Looking Backward." The first credit card was issued in the 1920's to sell fuel to new automobile owners. An electronic payment refers to many ways to send money to a party without writing a check or using cash. Credit cards are an electronic payment method.

Electronic payment refers to the entire system of electronic payment methods. BEsides credit cards, these methods include wire funds transfer, debit cards and ACH (automated clearing house). These methods are used to purchase anything from books to multi-million dollar commodities. You can pay your household bills or your doctor's bills with an electronic transfer of funds.

Credit cards are issued by a bank or company that is loaning you their money. You pay it back in monthly installments or in one lump sum payment. If you repay the credit card in one month, you avoid interest charges. Pre-paid credit cards are credit cards in which the account holder is the bank and deposits onto the card. The car recipients then spends off the card. 

The electronic payment system is the basis for e-commerce. E-commerce is the Internet' s business system, which includes debit cards, on-line banking websites such as Paypal and ClickBank and various wire fund transfer methods. Even a check can be sent electronically by entering the bank routing number and account number. Using the SWIFT and a business bank account, millions can be wired from any world bank to any world recipient bank.