What is a Charge Card?
A Charge Card is a payment Card that requires you to pay your balance in full each month. Unlike a Credit Card, a Charge Card has flexible spending power, also known as no pre-set spending limit1. This means that the amount you can spend is dynamic and can adapt based on your transaction patterns, your personal credit rating and other factors.
A Charge Card doesn’t incur interest. However, you will need to pay your balance in full every time as late payment fees apply if payment is late or if the amount isn’t paid in full2.
Read on to learn more.
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How does a Charge Card work?
When you use a Charge Card to make purchases, those transactions are added to your monthly statement.
At the end of each billing cycle:
Unlike a Credit Card, a Charge Card does not usually allow you to carry a balance month to month. |
How does a Charge Card work?
When you use a Charge Card to make purchases, those transactions are added to your monthly statement.
At the end of each billing cycle:
Unlike a Credit Card, a Charge Card does not usually allow you to carry a balance month to month. |
How does a Charge Card work?
When you use a Charge Card to make purchases, those transactions are added to your monthly statement.
At the end of each billing cycle:
- You receive a statement outlining your total balance.
- The full balance is due by the payment due date.
- If payment is missed or late, late payment fees apply2.
Unlike a Credit Card, a Charge Card does not usually allow you to carry a balance month to month.
Do Charge Cards have a Spending Limit?
Instead of a fixed limit, Charge Cards offer flexible spending power, also known as no pre-set spending limit1. This means that the amount you can spend is dynamic and can adapt based on:
This flexibility can be useful if you have variable monthly expenses. Discover the benefits of flexible spending power.
It’s important to note that no pre-set spending limit does not mean unlimited spending. The way you use your Card can help your spending power grow, particularly in the first few months. To help maximise your spending power, you can make regular transactions and don’t miss any payments. |
Do Charge Cards have a Spending Limit?
Instead of a fixed limit, Charge Cards offer flexible spending power, also known as no pre-set spending limit1. This means that the amount you can spend is dynamic and can adapt based on:
This flexibility can be useful if you have variable monthly expenses. Discover the benefits of flexible spending power.
It’s important to note that no pre-set spending limit does not mean unlimited spending. The way you use your Card can help your spending power grow, particularly in the first few months. To help maximise your spending power, you can make regular transactions and don’t miss any payments. |
Do Charge Cards have a Spending Limit?
Instead of a fixed limit, Charge Cards offer flexible spending power, also known as no pre-set spending limit1. This means that the amount you can spend is dynamic and can adapt based on:
- ➢ Your transaction patterns,
- ➢ Your personal credit rating,
- ➢ Other factors assessed by your Card issuer.
This flexibility can be useful if you have variable monthly expenses. Discover the benefits of flexible spending power.
Charge Card vs Credit Card: what’s the difference?
Charge Cards and Credit Cards work differently, here’s an overview of the differences:
| Feature |
Charge Card |
Credit Card |
|---|---|---|
| Repayment |
Balance paid in full each month | Minimum payment required; balance can roll over |
| Interest | No interest | Interest charged on unpaid balance |
| Spending limit | No pre-set spending limit1 (flexible spending power) | Fixed credit limit |
| Ability to carry a balance | No | Yes |
| Fees | Annual fees and late payment fees apply2 | Annual fees, interest and late payment fees apply |
| Rewards points | Yes, depending on the Charge Card you choose | Yes, depending on the Credit Card you choose |
| Best suited for |
Those who repay monthly | Those who need revolving credit |
Learn more about Credit Limits, Interest and Repayments for Credit Cards.
Benefits of a Charge Card
Charge Cards can offer several advantages:
No interest
Because balances must be paid in full each month, interest do not apply.
Flexible spending power
Without a pre-set spending limit1, your spending capacity can adjust based on your financial profile and payment behaviour. Learn more about flexible spending power.
Rewards and travel benefits
Many Charge Cards offer reward programs and travel benefits depending on the Card you choose. Learn more about Amex benefits.
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Fees and risks to consider
Before applying for a Charge Card, it’s important to review the Card’s Terms and Conditions and the fees that may be applicable to your Card such as:
It is also important to keep in mind that:
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Fees and risks to consider
Before applying for a Charge Card, it’s important to review the Card’s Terms and Conditions and the fees that may be applicable to your Card such as:
It is also important to keep in mind that:
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How does a Charge Card work?
When you use a Charge Card to make purchases, those transactions are added to your monthly statement.
At the end of each billing cycle:
- You receive a statement outlining your total balance.
- The full balance is due by the payment due date.
- If payment is missed or late, late payment fees apply2.
Unlike a Credit Card, a Charge Card does not usually allow you to carry a balance month to month.
Charge Cards FAQs
Unlike Credit Cards, Charge Cards have no interest and their balance needs to be paid in full each month. With a Charge Card, you also have no pre-set spending limit1 (which means that the amount you can spend is dynamic and can adapt based on your transaction patterns, your personal credit rating and other factors).
Charge Cards have flexible spending power, also known as no pre-set spending limit1. This means that the amount you can spend is dynamic and can adapt based on your transaction patterns, your personal credit rating and other factors.
Charge Cards require the full balance to be paid each month. They are not designed for carrying balances over time.
Payment history may be reported to credit reporting bodies. Paying on time may help demonstrate responsible credit behaviour.
If you miss the payment due date, late payment fees will apply2. It’s important to review your Card’s specific Terms and Conditions.
Want to learn more? Explore these articles:
What is Amex Membership Rewards® Program and how to earn and redeem points for travel and shopping rewards3.
Personal Charge Cards vs. Business Charge Cards: which one is right for you?
Explore Business Charge Cards and how they can adapt to your Business’ spending needs and help with managing cash flow
How to apply for a Charge Card and what you’ll need.
Life With Amex: make the most of Amex Cards
Read our Life With Amex articles and discover tips on managing your Card, lifestyle inspirations, travel recommendations, event ideas and business insights.
Life With Amex: make the most of Amex Cards
Read our Life With Amex articles and discover tips on managing your Card, lifestyle inspirations, travel recommendations, event ideas and business insights.
1. Flexible Spending Power.
Unless we tell you otherwise, your American Express Charge Card comes with flexible spending power, also known as no-pre-set spending limit. This means that the amount you can spend is dynamic and can adapt based on your transaction patterns, your Personal credit rating, and other factors. The way you use your Card can help your spending power grow, particularly in the first few months. To help maximise your spending power, make regular transactions and don’t miss any payments. Please refer to your Personal Charge Card Agreement available here for further information.
2. Amex Charge Card Late Payment Fees.
A charge of three percent (3.0%) or $20, whichever is greater, will be charged on any overdue amount.
3. Membership Rewards Program.
Subject to the Terms and Conditions of the Membership Rewards program available here. Merchants classified as "government" include the Australian Taxation Office, the Australian Postal Corporation (Australia Post), Federal/State and Local Government bodies. Industry specific earn rate may apply when you use a payment account, payment aggregator, services of a third party or online retailers that sell goods for another merchant. For example a payment made to Local Government bodies processed through a payment aggregator may earn rates at the government earn rate. There may be tax implications associated with participation in the Membership Rewards program. You are advised to check with your accountant or tax adviser for further information.