Why are checks and credit cards not money?

Answer 1

Because later on you will have to pay real money for what you bought with your credit card.
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Right. They are a PROMISE to pay. Not payment.

In defining

money, we include, along with currency, deposits at

banks and other depository institutions. But we do

not count the checks that people write as money.

Why are deposits money and checks not?

To see why deposits are money but checks are not,

think about what happens when Colleen buys some

roller-blades for $100 from Rocky’s Rollers. When

Colleen goes to Rocky’s shop, she has $500 in her

deposit account at the Laser Bank. Rocky has $1,000

in his deposit account—at the same bank, as it happens.

The total deposits of these two people are

$1,500. Colleen writes a check for $100. Rocky takes

the check to the bank right away and deposits it.

Rocky’s bank balance rises from $1,000 to $1,100,

and Colleen’s balance falls from $500 to $400. The

total deposits of Colleen and Rocky are still the same

as before: $1,500. Rocky now has $100 more than

before, and Colleen has $100 less.

This transaction has transferred money from

Colleen to Rocky, but the check itself was never

money. There wasn’t an extra $100 of money while

the check was in circulation. The check instructs the

bank to transfer money from Colleen to Rocky.

If Colleen and Rocky use different banks, there is

an extra step. Rocky’s bank credits $100 to Rocky’s account and then takes the check to a check-clearing

center. The check is then sent to Colleen’s bank,

which pays Rocky’s bank $100 and then debits

Colleen’s account $100. This process can take a few

days, but the principles are the same as when two

people use the same bank.

From- Macroeconomics,Michael Parkin, 10th edition