Charge Cards

January 14, 2010

Charge cards are often thought of as being like credit cards, but they are different in many ways.

Charge cards are best thought of as something between a debit card and a credit card.  Like a debit card, and unlike a credit card, they cannot carry a balance on them month after month.  This means that it is not possible to build up a large interest bearing debt on the card.  Unlike a debit card they have a separate balance from a checking account and the way in which they are dealt with is to demand full payment in every monthly statement. read more…