Charge Card Definition

A charge card is similar to a credit card except that the full balance of a charge card must be paid in full at the end of every payment period. In other words, a charge card has no minimum payment, has no interest rate, and does not accept partial payments. Charge cards are commonly used by governments or businesses as a cost-tracking aid. Some high-end retailers also offer charge cards. In general, however, charge cards are being replaced by credit cards.