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Are credit cards money? 

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D. Reynolds eNotes educator | Certified Educator

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Credit cards are not money. As the name implies, they give you credit: an IOU. The bank, in other words, is loaning you money when you use a credit card. You have to pay this money back within a certain time frame or you will be charged interest for the use of the money. The interest is often very high, so if you don't have the money to pay off the credit card, it it best to avoid using one. If you must borrow money, it is best to get a lower cost bank loan.

Money, in contrast, is legal tender that you get in form of metal coins and paper bills. Once you hand that over in exchange for a good, you don't have to pay anything else. There is no interest charge for paying with cash, because cash is not a loan. Cash is the best way to purchase items, though one we have moved away from in this culture because it is cumbersome to carry around cash—and puts you at risk of being robbed—whereas credit cards are easy to carry. However, they are not the same as cash.

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nikasho0100 | Student

I don't really agree that credit cards are money. We tend to see it as money because if we go through the characteristics  and functions of money credit cards do have some characteristic's of money but not all. even the functions and characteristics are similar because in an indirect way its money which is attached to the credit card. If we go through some function as

MEDIUM OF EXCAHNGE -  credit cards are not very likely to fullfill this as their might not be places which have credit card facihlities but money is gemerally accepted by everyone anywhere.

Therefore due to factors like this credit cards are not money.