Definition
A charge card is a tool for buying goods and services in which the cardholder pays the balance in full each month.
Analysis
A charge card is not a credit card. It is used like a credit card, except that the balance must be repaid in full each month. A credit card has a revolving account, in which a portion of the balance may be carried over to the next month.
The traditional American Express card is one example of a charge card. The cardholder may make charges each month up to a credit limit, and then they must pay the entire balance at the end of the billing cycle.
