A charge card is a type of credit card that enables the cardholder to make purchases which are paid for by the card issuer. The cardholder is obligated to repay the debt to the card issuer in full by the due date, usually on a monthly basis, or be subject to late fees and restrictions on further card use.

What is the difference between a charge card and a debit card?

Charge cards are similar to credit cards in that they allow you to pay for purchases up to your credit limit. ... Charge cards require the balance to be paid back in a short period of time, usually within a month. Debit cards are tied to a bank account from which funds are withdrawn for each purchase.

What is the purpose of a charge card?

Charge card definition. A charge card is a payment card typically used by businesses, or sometimes by high earning individuals. It is similar to a credit card in that you can use them to make purchases without any money being immediately debited from the business bank account.