Charge card - Definition and Overview

A charge card is similar to a credit card, except that the charges made to it must be paid-off each month, rather than having revolving credit which carries a balance forward. Many people are not aware of this distinction however, and often interchangeably use "charge card" to describe any card which can be used as payment, or "credit card" for any credit or charge card.

Governments and large businesses often use charge cards to pay and keep track of expenses. Some high-end retailers like Neiman Marcus issue charge cards to customers. American Express and Diners Club cards are also charge cards, rather than credit or debit cards like VISA and MasterCard.