"Network retail payment and settlement"--the third chapter: Principle of payment and settlement

Chapter III Principles of payment and settlement

Section I payment and settlement essence

I. Definition of payment and settlement

(i) Payment, liquidation, settlement and trading

Payment refers to the process and behavior of transferring the corresponding currency ownership from the payer account to the payee account in order to liquidate the creditor's rights and debts arising from the exchange of goods or labor activities.

Liquidation refers to the process and behavior of currency settlement of multiple debt and debt relationships formed in economic activities according to certain rules and institutional arrangements.

The settlement refers to the process and behavior of the settlement of the creditor's rights and liabilities arising from the liquidation process, the accounting treatment between the financial institutions of the receiving and the payer, and the records of the books to complete the final transfer of the currency ownership.

Selling refers to the process and behavior of a party in a commercial transaction who sells goods or services produced and operated in exchange for currency. This party is therefore called the seller.

Buy refers to the process and behavior of the goods or services required by one party in the business transaction. This party is therefore called the buyer.

(ii) Relationship between payment, liquidation, settlement and sale

The relationship between payment, liquidation, settlement and sale is:

1, buying and selling are the two corresponding basic processes and activities of commercial transactions, and are the basis of payment, liquidation and settlement.

2. The payment originates from the economic exchange activity between the exchange main body, but because of the intervention of the bank credit intermediary, it finally evolves into the financial relationship between the Bank and the customer and the client bank.

3, the capital transactions between banks, but also through the central bank of the capital liquidation of the cold, in the liquidation process to calculate a large number of receivables, the pay side of the multiple debt relationship, and the settlement of the final debt relationship results need to settle.

4, the Bank is in the social and economic activities of the center of Capital, the bank and customer payment is a bank to provide customers a financial services, is the basis of the whole payment activities. The bank's business system must settle all kinds of creditor's rights and debts in economic activities, and must pass the arrangement of liquidation system. As a result, banks ' payment systems are sometimes referred to as clearing systems. In fact, for banks, payment and settlement clearing are two concepts that cannot be completely differentiated, while payment systems and settlement clearing systems are two systems that cannot be separated.

5, payment and settlement of the two concepts are basically the same, it is difficult to strictly distinguish. Therefore, payment and settlement can be directly understood as payment settlement or payment. In our country "Bill Law" and "payment settlement method", the meaning of payment settlement refers to the units, individuals in the social and economic activities in the use of bills, credit cards and exchange, commitment, entrustment and other settlement methods of payment and money settlement. That is, one party obtains the other party's goods and the service to give the monetary compensation, guarantees the transaction both parties ' rights and the duty balance.

Ii. Payment and Liquidation methods

1, the exchange of things

In the Society of Barter before currency, the exchange of barter is not only a kind of original commodity exchange, but also a kind of creditor's right and obligation settlement. The following figure is the exchange of barter for the axe by sheep in primitive society.

Figure 3.1: The simple value form of barter

Figure 3.2: Advanced value form of barter exchange

In the exchange of barter, it is difficult to distinguish between buying and selling two kinds of exchange behavior from either side of the exchange, that is to say, in barter, buying and selling are together, buying and selling are not separated. Buy at the same time can also be seen as selling, selling at the same time can also be regarded as buying. For example, in the exchange of the upper sheep and the axe, from the point of view of the man with the sheep, he sold the sheep and bought the axe, and from the angle of the man with the axe, he sold the axe and bought the sheep.

After the money is produced, the original exchange of things and things is replaced by the exchange of things and currencies. Only when money is used in exchange, for example, a sheep = several currencies, or two axes = several currencies, can people distinguish between buying and selling. From the point of view of the sheep and the axe-holders, they were in kind, gained money, and were sold; from the point of view of the people with money, they gave up the money and got the kind, so they bought it. Only when the currency as an intermediary of exchange to participate in the exchange, sell and buy two kinds of exchange behavior is differentiated, and the future of human business transactions have a decisive impact and significance.

Therefore, we call the exchange of barter not as a payment, because the sale is not divided, and only after the emergence of the currency, because the commercial exchange of money to pay the party's behavior, that is, the act of payment of money, and the sale of goods on one side of the act as goods delivery.

2. Currency Payment Settlement method

The way of barter in real life is greatly limited, that is, the owner of the party to exchange is not the other side of the other side of the need for the other, the scope of activity also has a lot of restrictions, it is not easy to do equivalent exchange. Therefore, barter is only accidental, commercial transactions are not active, the scope and size are very small. In this case, people began to look for an exchange of intermediate objects as a medium of exchange.

When money is used as a medium of exchange, the act of currency payment to exchange goods can really have the modern meaning of currency payment and settlement.

Figure 3.3 Value form of currency

When the general equivalent of the currency appears before, buy and sell two kinds of exchange behavior is not separated, as the exchange of the subject of human values can not be born, because the value is from the seller's point of view from the sale of goods or services from the angle of the securities Exchange and its results. After the emergence of money, people's understanding of the amount of money they possess and exchange with others (including physical currency) constitutes the basic content of human values. The values of man [1] arose after the creation of money.

When money is produced, money becomes a tool and symbol for measuring the value of the object or service that is used for exchange, just as the meter, kilogram, and volt become tools and symbols for measuring length, weight, voltage, etc. In the history of mankind, there are a variety of currency types, appellation and forms, and now more than 200 countries in the world have different names of currencies. At present, the world's most used currency is "dollar" (United States Dollar), "Euro" (ECU), "pound" (Pounds), "yen" (Japanese yen), "RMB" (RMB) and so on. They all have one thing in common, the value of the metric. The real meaning of a price is a certain amount of monetary unit, or the result of a measure of the value of a unit of currency to a certain object. The relationship between price and value is that value is a measure of the utility of the exchange, and the price is the specific quantitative result of the measure. It is one of the biggest misunderstandings of economics to put the two together as a manifestation of the same or different quantity.

Fig. 3.4 The performance of volume

3. Bank Transfer Payment Settlement method

Along with the transaction link and the payment link in the time and the space separation, but must guarantee the trade smoothly safe and reliable? The Bank was born as a payment settlement intermediary. This kind of bank credit is based on the bank to pay settlement intermediary monetary performance (that is, separated by the payment link), called Bank Transfer Payment settlement method. It is precisely because of the commercial credit and the emergence of bank credit, only to promote the separation of the transaction link and payment link, only to produce a bank-mediated payment settlement system, which is also the basis of the Society of commodity economy. It can be seen that the relationship between payment and credit is very close. Through the bank's transfer payment settlement method, also known as Non-cash settlement method or Bill settlement. This reduces the number of ineffective labor and costs in the middle, increases the efficiency of capital flow and saves costs. Through the bank's fund transfer payment settlement is the most important international fund payment settlement method at present.

The process of payment and liquidation of commodity transactions is shown in Figure 3.5 below

Figure 3.5: The process of payment and liquidation of commodity transactions

The existence of money has more than thousands of years of history, modern economic life, people also need to be inseparable from the currency. People are accustomed to the existence of money. But where did the money come from? What is the nature of it? These problems have long plagued people. In this respect, Marx had quoted British Congressman Glaystone as saying: "The people who have been fooled by love have not even been fooled by delving into the nature of money." "It seems to be a mystery where money comes from." But this is another unsolved riddle, because understanding the origin of money is the starting point of understanding the essence, function and function of currency, and in a sense, it is also the starting point of the correct understanding of monetary and financial theory. The history of the use of money originated from the earliest time when material exchange occurred. In primitive society, people use barter to exchange their own supplies, such as a sheep to change a stone axe. But sometimes limited by the type of material used for exchange, it is necessary to find an item that can be accepted by both parties. This kind of goods is the most primitive currency. Animals, salt, rare shells, feathers of rare birds, precious stones, alluvial gold, stones and other items that are not easily acquired have been used as currency.

Section II Payment activities

I. Composition of the payment activities

It is called payment activity that the parties involved in the payment activities take some form of the liquidation of the creditor's rights and debts in the transaction. The completion of such activities should include, at a minimum, the following elements: participation, behavior, debt, object of payment, and payment environment. In the market or social environment, there is an economic relationship between the participants due to their respective market behaviors, which is the relationship between creditor and debtor, which needs to be cleaned up and settled in some way to settle the payment activities in the market environment. The composition of the payment activity is shown in Figure 3.6.

Figure 3.6 Composition of the payment activities

In Figure 3.6, the payment activity consists of the following environment: participant-market behavior-Debt Relationship-payment Object-payment method-Debt settlement.

(i) Participation subject

Different kinds of economic activities determine the different types of participating subjects.

1, business activities decided to participate in the main question of the transaction type

In the trading activities of the market, the nature of the business determines the relationship between the participating subjects, so the form of the participants is the merchant and the consumer, which is a major economic behavior in the process of the Commodity society development from the product exchange to the commodity transaction. In this relationship, the payment activity takes place through the behavior of buying and selling, and completes and ends the debt relationship established in the market economic activity. In turn, the relationship formed in the market by the participating subjects realizes the transfer of the commodity ownership through payment, and also realizes the change of the right of the currency. The participant is a type of transaction that buys and sells.

2, the loan activity decided the participation subject question belongs to the credit financial type

The development of market transactions, the emergence and establishment of commercial credit, the participation of the main question is not simply the existence of a buying and selling trading relationship. In the steady formation and development of the long-term trading relationship between the participating subjects, there may be a new type of credit relationship, so the lending behavior appears, so that payment will occur after the lending behavior, and the commitment to repay the repayment of the capital time value of the payment characteristics, which is involved in a financial relationship between the main body. The first form of the transaction is the participation in the main question of the sale and credit behavior occurs, then gradually developed into a specialized financial services intermediary institutions of the banking, trust, guarantee, leasing and other financial services institutions, the participation of the main forms of diversification of the type, they formed a credit to maintain the type of financial relationship.

3, the gift activity decides the participation subject question belongs to the transfer type of the assignment

With the progress and development of the society, the behavior of the participants is not only the transaction and the credit relationship, but also the donation activities for the development of social public welfare undertakings, such as donations to social benefits, donations to educational undertakings and donations to other public welfare undertakings. This kind of non-profit social behavior without economic aim is the transfer of money and money through payment mode between the donor and the beneficiary in the participant's question, which we call the type of alienation.

4. The transfer type of the national government's financial distribution

The state and the government use the tax revenue to obtain the Social Fund, carries on the distribution to realize the Social Fund occupies the equity and the social public welfare cause and the national economy development. The transfer payment and distribution of the financial funds of all levels of government also appear the transfer payment of the fund, which we call the transferring type of the fiscal distribution, it does not carry the economic profit purpose of the main body, but is a kind of government behavior entirely.

(ii) Market behaviour

The mode of economic activity and social activities adopted by the participants in the market environment is called market behavior. This behavior determines the relationship between them, which in the economic activities generally have to pay the way to be repaid and the end of the characteristics. Market behavior According to its nature can be divided into the following types.

1. Trading Behavior

If the participants in the market economic activities of the use of the transaction behavior, then they ask the formation of a kind of goods in the process of the transfer of ownership of the debt, the liquidation and termination of the relationship is generally only through the payment of money in the form of settlement, can also be agreed by the parties to the transaction of other equivalent assets, The deduction of goods and securities to be settled.

2. Lending Financial Behavior

If the participants in the market economic activities in the use of credit lending behavior, they asked the formation of a monetary Fund in the process of the formation of the financial debt relationship, generally with the financial agreement due to the payment characteristics of repayment. This kind of behavior also has the characteristic that two times pays, the creditor spends the money fund, forms the creditor's right and the debt relations after the Monetary Fund transfer, the borrower can settle the creditor's debt relationship through the second payment of the maturing debt service.

3. Donation of public good behavior

If the social behavior adopted by the participant is not of the nature of economic activity, such as the donation to the public welfare and welfare cause, in this process there is also a corresponding payment of funds transfer account, but in this kind of payment behavior after the participation of the main body does not produce creditor-debtor relationship, but only the right and obligation relationship, It is a social rather than economic relationship for the beneficiary to follow and carry out his obligations as agreed by the licensor. Moreover, this method has the characteristic of establishing the relationship of rights and obligations after payment, instead of paying off the debt relationship.

(iii) Debt-obligation relationship

Creditor's debt relationship is a kind of legal economic relation which is formed between the participants in the economic activity, which has the right to repay the other party with the compensation obligation, which is related to the participation subject and the behavior they adopt. The relationship of creditor's debt is produced after the transaction of economic activity in society, and with the development and perfection of the commodity society, the relationship is in the course of the continuous evolution and development, and the new form, especially the production of commercial credit, has a new characteristic.

1. Trading is the initial basis for the formation of creditor-debtor relationship

In the trading activities of the market, the transfer of the ownership of the goods selling occurs, if the purchaser of the purchased commodity has an obligation to repay the value of the equivalent currency, it forms a repayment obligation to measure its value by the monetary value, which is the debt, and the seller has the right to obtain the value of the equivalent currency, which claims the claim.

This kind of creditor-debtor relationship only appears in the process of commodity market transaction, and the exchange between the two parties in barter Exchange Society is the exchange of product ownership, rather than the emergence of the debt relationship with value measure. But only in the commodity society in the trading market, when the intermediary currency of the transaction occurs, the value of currency measurement, when the payment method to achieve the liquidation of the debt relationship will appear. Therefore, only in the transaction process of commodity society, the transfer of the ownership of goods has also produced the emergence of the equivalent creditor-debtor relationship in the value measure, and the relationship must be repaid in the economic activity, so it is necessary to use the means of payment.

2. The emergence of credit makes the development of creditor's debt relationship appear new form

(1) Credit to promote the expansion of production and objectively increase the flow of goods

From an economic point of view, producers have the instinctive production impulse to obtain high profits. The way to obtain profits is to increase the price of products, the second is to increase production, and constantly expand the output to form a scale effect. This must speed up the transaction process of the market, accelerate the social circulation of goods, this is the product to the goods, goods transfer to the consumer goods. In the process of long-term transactions, both parties found that the use of credit transactions are beneficial to both sides of the transaction, producers can increase production, expand production, buyers can solve the difficulties of capital turnover, of course, all these should be based on long-term trading activities formed by mutual trust between the two sides.

(2) Credit promotion of the establishment of trade credits

Credit must be repaid in a prior commitment, and this credibility is gradually established and formed in the course of long-term commercial transactions, and this reliable business reputation makes both parties willing to sell on credit when funds are scarce and tense. The sale of credit objectively promoted the circulation of goods, also formed and established the transaction process of commercial credit.

The phenomenon of credit in business relations is based on the relationship between trust and the mutual trust in the process of transaction is the basis of generating credit, the impulse of profit for the producer to enlarge the production, the benefit of speeding up the turnover and use of money for the purchaser, this kind of trading method which both sides are willing to accept will be developed, Also make the credit appearing in the transaction in this way in the community to be further consolidated.

(3) Credit in the use of funds continue to develop a loan

In addition to the transaction process of credit behavior, in the production and consumption process is also reliable credit to take a loan to speed up the demand for capital and turnover, which is the credit in the transaction process of an extension of the use and development. Producers in order to expand the demand for funds to increase production can use loans, consumers in order to advance consumption can use loans, this rely on the development of credit to the financial needs of the credit relationship is conducive to the circulation of social goods and production development, so the progress of society has prompted the continued development of credit, In turn, the development of credit has promoted the progress of social material and civilization.

(4) The emergence of banking and financial services institutions is the advanced form of Social Credit relationship development

Commitment and honour are the basis of credit generation, and the commitments and payments that arise in economic life are gradually solidified and stabilized in long-term business activities. Some cash-strapped operators find it more profitable to rely on their own credit in trading activities than their trading profits, and the business is easier and simpler to operate. As a result, financial services institutions that specialize in borrowing and lending services are formed in the market, and they are required to lend money in advance of their commitments and to recover principal and interest at maturity. In the course of their business, their credit and reputation have been developed, and they can promise that all the bills issued or issued have the ability to honour and pay the currency, so that credit is enlarged and derivative currencies appear. This intermediary institution that uses credit to provide financial services for lending is the bank. The bank can use the time difference between the payment and repayment of funds to lend out the temporary accumulation of funds and further expand the operating scale of the credit currency, even if they can develop various means, means and tools for exercising the functions of payment and settlement, the institutions that specialize in financial services are evolving and evolving, so that the Social Credit relationship is further developed. Therefore, the bank is the Social Credit development to the advanced form product.

(5) The main way of the relationship between the financial debt and the social debt

Whether the process of production, trade and circulation will generate demand for money and money, lending has gradually become a major means of social and economic activities. Credit generates loans, loans form the relationship of capital and debt, and any form of debt relationship requires the measurement of monetary equivalence to be able to pay off, so the various creditor-debtor relations in social economic activities are mainly reflected as the debt of funds, And the banks that run the funds will inevitably develop into the center of the Clearing and settlement service of the financial and debt relationship. The evolution and development of various relations in economic activities mainly focus on the credit relation of money demand, the creditor's right is the claim to the value of the equivalent currency, the debt is repaid with the value of the equivalent currency, the debt relation is measured by the value of the equivalent currency, the credit of the promise and repayment is also done by the payment of the value of the equivalent currency, Therefore, the development of financial debt relationship has become the main way of Social Credit development.

3, credit development loans to form a new bond and debt capital relationship

The relationship of creditor's debt formed in the transaction is mainly due to the transfer of the commodity ownership, which is only measured by the monetary value, which is accompanied by the transfer of the ownership of the goods, which is the remarkable characteristic. After the emergence of the bank, the creditor's debt relationship can not be accompanied by the sale and purchase of the commodity, that is, the loan directly produces the monetary value of the money and debt relationship, this credit relationship is due to the demand for funds in the business activities arising. Borrowing does not occur entirely in the process of material production and consumption activities, but is a kind of financial relationship that can be independent of these activities. Any member of society may have a lending relationship with a bank, the formation of funds of the creditor's rights and debts, as long as there is credit can happen to borrow, and borrowing funds can have a variety of uses, this kind of money based on loans to form the creditor's debt relationship has become a common and major economic relations, which is the development of the credit ceremony is an inevitable phenomenon.

Ii. Credit Paid

(i) Definition of credit

Credit in English is the meaning of "trust, Trust," which includes integrity and the content of keeping promises. The meaning of credit economics is to embody the loan behavior of the specific relationship, it has two basic characteristics: first, repayment is the prerequisite, the maturity must be repaid; second, repayment must have a certain amount of increase, this is the interest. The lending behavior can be in the form of commodities or in monetary form. In today's modern economy, where money is widely used as a means of payment, the loan relationship of monetary form is the main way of credit. Thus, credit can be defined as the lending behavior of a temporary transit commodity or currency that is conditional on repayment of principal and interest.

The emergence of credit activities involves both sides of the credit relationship, in the lending activities when the creditor's rights and debts accompanied with the mutual credit relationship, there is no such relationship, both the creditor's rights and the debt relationship can not be repaid.

Since credit has two basic characteristics of due restitution and payment of interest, credit behavior differs from general commodity transactions, and also differs from financial distribution and other forms of value movement, which are unilateral temporary alienation and transfer of value without the change of ownership.

Generally speaking, the production of credit is determined by economic relations established in economic activities, and the steady development and solid formation of this relationship will only further develop and form mutual credit. And credit is in the economic activity after the emergence of lending behavior, there are goods and currency loans, there is the phenomenon of deferred payment, only the existence of the credit relationship between the parties. The borrower believes that the trustee has the ability to pay due repayment, he is likely to grant the letter, and the borrower believes that he has the ability to pay the repayment capacity, he also borrow, so this behavior can occur mainly based on the debtor has the ability to pay the repayment of the credit on the basis. The borrower has the maturity to pay the repayment ability the credit is the loan phenomenon Appearance Foundation. Therefore, the payment credit is the basis of the loan behavior, and the occurrence of the loan phenomenon is the necessary condition of the credit relationship.

(ii) Relationship between credit and currency

Credit is the product of the emergence of the currency in which the payment function is exercised.

1. There is a primary credit relationship in the Exchange society

There is a primary form of credit in the Barter society, if the exchange of relations between the two sides is relatively stable, it may lead to unilateral product value of the phenomenon of alienation, which is based on the ex-post promised to repay the agreed items on the basis of trust, this is the initial credit relationship. This relationship is extremely fragile, however, because this prior agreement on the repayment of a certain item will make it difficult to implement due to the specificity and limitations of the reimbursement and other reasons. This risk of not implementing commitments at any time makes it difficult to develop a credit relationship established in a barter approach.

2. The development of the medium of trade makes the credit develop

From the exchange of barter to the intermediate medium, the unilateral product value of the phenomenon of the emergence of the ex-post, according to the promised repayment method, can be carried out in accordance with the agreed medium number, intermediary media as the exercise of the role of the primary function of payment. As the intermediary has a universal social characteristics, accessibility and recognition, which makes the probability of default risk reduced, relying on the use of the media to exercise the payment function of the unilateral transfer of products trading behavior has been developed, credit transactions began to form. However, this competition is still in the scope of small, few and very uncommon situation, only in specific circumstances, specific relations and specific circumstances, therefore, credit is still in the stage of underdevelopment.

3, the emergence of money payment function of the credit society will produce

Only when the credit is prevalent in the whole society, and the way of credit is widely used, and the institutions and organizations that use this way to operate and service, this kind of behavior can be said to have the characteristics of the society, also have the definition of the credit society. This can only occur when money is produced and the measurement of the function and value of payment is exercised by currency.

The transfer of the ownership of goods is realized by the payment form of the currency, and the producers and sellers are transformed into a single demand for money. The exercise of the function of money payment makes the transaction link simpler and the credit of the transaction is developed. The urgent need of producers and sellers for currency turnover is not only achieved by a single way of selling goods, but also by borrowing in the market, which requires them to defer repayment of the credit paid in currency. Consumer demand for goods can also be achieved by credit, as long as he has the credit ability to postpone payment. Such a credit with deferred repayment capacity can achieve a social demand for capital lending, and this demand for capital lending encourages the emergence of intermediaries with operating funds and lending services, resulting in the creation of banks and other institutions operating funds and assets and providing financial services, In the whole society appeared rely on the credit service industry, the credit society appears.

With the continuous expansion of financial services, the use of deferred payment and the emergence of various credit modes of economic activities in the continuous development and innovation, the purpose is to make the circulation of the society and capital flow faster, more convenient and efficient, so that the community to create value and wealth efficiency, So society is moving towards a higher stage of commodity society and Credit Society. Especially in today, high and new technology, in the network environment under the social environment, the development of credit and the continuous innovation of payment methods and tools will make the credit and deferred payment to the development of society has a greater impact and effect.

III. Basic principles of payment activities

Because the transaction and the loan activity produces the creditor's debt relation between the economic main body, but this kind of creditor's debt relation's repayment needs to exercise the payment the means to terminate and completes, this is the basic reason which the payment produces. Payment is a kind of way and means in economic activity, its aim is to pay off the relationship between creditor and debtor, and the basic characteristic of payment in economic activity is called payment principle. These principles mainly include:

(i) The solvency of the creditor-debtor relationship

The purpose of payment is to liquidate the relationship between the creditor and the debtor in economic activity, to have obvious economic interest, and to pay for the payment activities, regardless of the method of payment, the means of payment and the payment instruments used, the purpose of which is to liquidate the creditor-debtor relationship established in economic activities. This relationship can not be liquidated in any form of payment, will not be adopted and accepted by the community, if the economic activities in the moment, only the process of payment fraud. Therefore, liquidity is a basic standard to measure the utility and feasibility of payment methods, means and payment instruments. Generally has the cash payment method, the account transfers the way, the bank bill Payment way, the asset mortgage payment way and so on achieves the debt repayment goal.

(ii) Social acceptability of the approach

The social acceptability of the way is a kind of social acceptance standard that measures whether payment can pay off the creditor's debt. "Shing" is a universal commercial law formed by human society since ancient times. Thus, the close relationship between debt and money is a common understanding of social formation. And the use of other alternative money in the way to pay off debt has a social acceptance problem. For example, it should be possible to repay debts by reason of other equivalents of debt equivalents, if the use of the equivalent of a person's securities or assets to the liquidation of the debt, but the parties may not be acceptable, if the acceptance of this is only a temporary agreement between the parties to pay the way, rather than the accepted mode of acceptance by the community. Therefore, this can only be a specific form of payment between the parties and not be widely used in society, not to use it as a payment tool.

Social acceptability is a practical and feasible social standard for payment. With the development and progress of credit society, financial institutions and other economic entities that operate money-financed services may develop new tools and new forms of payment. Whether these new payment tools and forms are feasible, whether they have the development and the promotion use value, the acceptance of the society should be the fundamental standard to measure its feasibility, and the development of payment methods and tools can illustrate and confirm this point. The society can identify with the payment tools issued by financial institutions, provided that the financial institutions have a high degree of credit in the society, which is the basis of social recognition and acceptance, which is caused by the credit of the financial institution with the full-time operation of money currency. People trust it because it has a credit commitment to cash money because it has the convenience and speed of payment that it has to pay, and the society will not accept it without these conditions. This also allows the bank to use the credit issue currency function. As long as there is a social identity can create a new payment tool, and the use of new payment tools and success to have to open up the market innovation spirit, such recognition to the market and the development of innovation at the same time.

(iii) Facilitation of the use of means

As a form of payment or tool accepted by the society, it should have the convenience of the recipient in the use of the method [5] and the convenience characteristic of the function application, which is the convenience meaning of the use. Including the convenience of payment method, the convenience of function use, the simplicity of formalities and the convenience of system environment support.

(iv) security used for payment

Payment is a transfer process of currency ownership, because the money has the social value, each social person has the demand of possession, which makes the currency in the handover process has been unrelated third party possession and theft may, this is the security problem. The security of payment transactions for cash use is mainly in the face of the risks arising during the handover. For example, a large number of security risks may be the risk of robbery or theft, which is an aspect of insecurity, on the other hand, the transaction of the identity of the counterfeit, can lead to the payment of fraud funds after the phenomenon occurs. Theft and fraud are two common types of unsafe phenomena that often occur during payment transactions. In the history of China, the practice of using Biaoju to escort silver is often used to ensure the security of the currency in the course of delivery, which means that there is a connection channel security in the currency payment process. Today, the opening and closing of the banking business day are armed with armored vehicles to ensure the safety of cash in the transit process, and the use of payment tools to pay a special channel and the way to ensure the payment of traditional security. The internet pays for the security of information transmission and the payment tool by the advanced information technology and institutional arrangement of currency in the transmission channel. Payment security issues are generated as shown in Figure 3.7.

Figure 3.7: Payment security issue generation

A new way of payment and whether it can be accepted by the society is a prerequisite for safety and feasibility.

(v) Reliability of payment credits

With the development of society, the way of cash payment will be more and more reduced, the way of cash payment has the following unfavorable conditions:

1, the cash is not convenient to carry;

2, cash custody is not safe;

3, handling the process of risk;

4, the use of the process has hidden dangers;

5. There are barriers to payment between currencies.

Therefore, in the frequent transactions and economic activities, when people's social activities are more and more large, the use of single currency cash payment method will increasingly not adapt to the life of contemporary people. In the payment activities, people will increasingly use the various payment instruments issued by banks and financial institutions to carry out payment and settlement activities. In economic life, with the intervention of bank financial institutions, the service of currency payment and settlement is strengthened. When adopting and selecting the payment instruments issued by banks, there exists a credit problem to this kind of payment, whether the credit of this kind of payment is reliable, whether people use it to make mistakes, whether it is convenient and safe to use, all these doubts reflect the reliability problem of paying credit. Reliability is people repeatedly try and error-free, safe, people only use it, reliable people often use it, often used after people can not leave it, so it will become a necessary way of payment in life. If it is not reliable, people use it and will not use it frequently, and that way and tools will lose their proper market. Therefore, the establishment of payment of credit is the payment tool can be long-term existence and development of the brand, and this brand must be based on the credibility of a reliable basis.

(vi) The security of the legal system

Payment activities belong to economic activities, any safe and reliable products are unavoidable in the use of economic disputes, in the credit society, a sound legal system is the normal protection of economic life order. With the increase of credit products, the tools and kinds of payment methods will be more and more, the innovation and development of banks will continue to introduce new financial products. When a financial institution introduces a new financial product and payment tool to the society, it is necessary for the consumers to accept it. This guarantee and commitment to be protected by the law, when the use of it to appear some unpredictable risks, we must bear the necessary legal guarantees of economic compensation, can not cause consumer complaints no door phenomenon. Therefore, the guarantee of the legal system is the new payment method and the basic social environment condition that the tool produces, is a work with basic sex.

Section III rules of the evolution of payment and settlement tools

The essence of payment tools

The essence of the payment tool is as the medium of exchange and the general equivalent.

The currency is the special commodity which separates in the long-term development process of the commodity exchange, is the natural result of the commodity exchange development. In the later period of primitive society, due to the development of social productive forces, there was an initial barter between primitive commune. With the further development of production, the exchange of goods has become a regular behavior. However, the direct exchange of goods often occurs in the difficulty of commodity transfer, the inevitable demand for a Suphung as a medium of exchange. When the general equivalent is gradually fixed on a particular kind of product, it is modeled as currency.

Ii. Evolution Law of payment tools

(i) Evolution of the currency

Since its inception, the currency has undergone several shifts, such as physical currency, metal currency and credit currency. The "ancestors" of money are derived from ordinary goods. Some general merchandise because of its special performance, suitable for the trading medium, so turned into a commodity family upstart-money. For example, shells, today's people have been hard to imagine it was the "money". In addition to shells, turtle shells, cloth, cocoa beans, whale teeth, and even corn, have been in different regions in different times as a currency. Later, the replacement of the physical currency is metal, such as gold, silver, copper, iron and so on, they have long played the role of currency. After the metal currency, money was born, the so-called credit currency.

China is one of the first countries in the world to use money, and in Chinese characters, most of the characters related to value are from "Bei". This shows that shellfish is China's earliest currency. With the rapid development of commodity exchange, seashells has been unable to meet people's needs, people began to use copper imitation sea shell. The appearance of copper shell is a significant evolution from natural currency to artificial currency in the history of ancient Chinese currency. The oldest metal currency in China is copper coins. One is "cloth", is the epitome of shovel-shaped tools. The second is "knife", is a miniature of the knife. Three is the copper shell, is in the southern Chu circulation, commonly called "The Ant Nose Money". Qin's reunification of China, the Qin Shihuang in 210 before the promulgation of China's earliest currency law "with the world of Qin yuan currency," the provisions of the country to pass the Qin circular square hole half of the money. In the period of Emperor Wudi, the central government withdrew the rights of the county, the central unified casting five Baht money. From then on the determination of the central government of coin casting, distribution of unified management. [6]

The credit currency takes notes as the main form of expression. In the Northern Song Dynasty of the late 10th century, a lot of paper-printed currency, "Son", became an important means of circulation and payment in economic life. Yuan Dynasty in the country to implement the system of paper money circulation, which is representative of Kublai Khan during the reign of the "Silver Ingot". A bank voucher is a paper-printed currency that appears in circulation in Europe with the development of capitalist banks in the first place. Initially, commercial banks can issue bank vouchers, and banks issuing bank vouchers are guaranteed to honour gold coins and silver coins at any time. By the 19th century, the issue of paper money had gradually been concentrated in the central bank in industrialized countries. At the end of 19th century, at the beginning of 20th century, with the wide circulation of bank vouchers, the number of precious metal coins was decreasing, which showed that the circulation of paper banknotes would eventually replace the trend of seigniorage.

In recent decades, a number of new currency forms are emerging, such as the current popular electronic money. Electronic money intangible, it relies on the electronic network of finance, electronic computer technology and communication technology as means, electronic data form stored in computer systems, through computer network system, electronic information transmission form to realize the function of money circulation and payment. The bank card is one of our common electronic money carriers, and the emergence of the electronic currency is a leap in the monetary history. Now, electronic money has been widely penetrated into modern life, it is more convenient and quicker to pay the transaction than the paper currency. The use of electronic money, can deposit and withdraw money, can be used instead of cash transfer payments, directly to the consumer settlement, but also to the bank to deal with consumer credit. In addition, compared with paper money, electronic currency is more difficult to forge, the use of more safe and convenient.

(ii) Relationship between the evolution of payment instruments and the evolution of money

The evolution of payment instruments is not exactly the same as the evolution of money. Payment tools are always ahead of the evolution of money. The corresponding relationship between the payment tool and the currency is shown in the following table.

Table 3.1 Payment tools and currency correspondence table

Payment Tools

Legal tender

Technological change

Full value currency → Mint

An adequate currency (a primitive currency, such as cattle or sheep; precious metals, such as gold or silver).