7

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

6

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.

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3

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.

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  • 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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