What are the similarities between Credit and Charge?
Many of the features of Business Credit and Charge Cards are similar:
• Both offer a convenient way to pay for everyday business purchases such as shipping, telecoms, advertising, business travel & entertainment, paying suppliers, or buying equipment
• Depending on the Business Card you choose you can earn Membership Rewards points1 for every dollar spent with both Business Charge Cards and Business Credit Cards
• Depending on the rewards programs of the Card, these points can be converted into a variety of rewards, such as travel2, gift cards3 or to pay off the balance on your card4
• Both can include additional protection – such as travel insurance5, purchase protection5 and fraud guarantee6. The benefits offered vary between Cards, so it’s important to understand the protection that comes with the Card and compare it against your business needs
• Both types of Cards have benefits such as being able to easily monitor and track expenses online, download statements and transactions details, provide Supplementary Cards7 to employees and to set-up alerts
What’s different about a Business Charge Card?
• It's a different kind of business payment tool in that when you put expenses on the card the full balance must be paid on the statement due date, hence there is no interest to pay on those purchases
• It has no pre-set spending limit8, unlike a Credit Card, which has a fixed credit limit. This means purchases are approved based on factors such as current spending patterns, credit records, and payment history. As you establish a spending and payment history the amount you can charge on the Card can grow, giving you greater flexibility to make larger purchases
What’s different about a Business Credit Card?
• It comes with a fixed credit limit, governing how much you can spend on the Card. You can request to increase this credit limit, however the limit will always be fixed and won't automatically adjust based on spending patterns, credit records, and payment history
• Instead of paying the balance in full you can choose to pay the minimum amount by the statement due date. If you choose not to pay the outstanding balance in full, you will be charged interest based on the interest rate of your Card
• Because you can choose to extend the full payment of your purchases past the statement due date, a business Credit Card can provide more payment flexibility and credit for business purchases. When using a Business Credit Card, it is always important to understand the interest rate associated with your Card
Those looking for a Card that can be used as a business payment tool with the goal of managing short-term cash flow might prefer a Business Charge Card.
Those looking for flexibility to pay for business purchases over time – or with needs to have access to credit – may prefer a Business Credit Card.
Find out more about our application process for business cards.
|Card Balance||Credit Limits||Interest Rates|
|Charge Card - The full balance must be paid in full on the statement due date, hence there is no interest to pay on those purchases||Charge Card - No preset spending limit6. The amount you can charge on the card can grow overtime||Charge Card - No interest rate charges, as you must pay balance in full on payment due date|
|Credit Card - The minimum amount due can be paid on the statement due date, interest will be charged on the outstanding balance||Credit Card - Fixed credit limit||Credit Card - No interest to pay if the balance is paid at the end of the balance month. Interest beyond that varies depending on the Card rate|
American Express approval criteria applies. Subject to Terms and Conditions. Fees and charges apply. All information is correct as at 24 April 2015 and is subject to change. This offer is only available to those who reside in Australia. Cards are offered, issued and administered by American Express Australia Limited.
American Express Australia Limited (ABN 92 108 952 085). ®Registered Trademark of American Express Company.
There are seven American Express Business Cards – one of them could be perfect for your business.
Speak to a specialist about our range of business Cards