What is a "charge card", and how is it different from a credit card?

What is a "charge card", and how is it different from a credit card?

Mitchell Freedman, CPA/PFS (CEO, MFAC Financial Advisors) gives expert video advice on: How should I choose a credit card? and more...

There's another kind of plastic that is called a charge card. The charge card is not a retail credit installment agreement, because you don't have the same options. Under a charge card you're required to pay the balance from the preceding month in full. Examples of charge cards would be the typical American Express Card or Diners Club Card. While they also now have credit card options for some individuals, they are typically charge cards.