There used to be a type of card that was offered called a "charge" card, how is that different from a credit card?


You cannot carry a balance on a charge card; the total balance is due as the payment each period.

I guess some government use charge cards. There is no interest to be paid on them, so it is cheaper, but the credit companies still make some money on transaction fees.


There's also a "debit" card in some countries which acts the same as a credit / charge card, except each transaction is subtracted from the account balance immediately, and the account cannot be in debit.

  • 1
    That depends on the account type: if the account to which the debit card is attached has an overdraft facility, then it can certainly be in debit (to the amount of the overdraft, but no more).
    – Peter K.
    May 4 '11 at 21:23

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