Boost your card knowledge with a better understanding of the differences between credit and charge cards.
A Credit Card gives you the choice to pay for your purchases in full or to carry a balance and make minimum monthly payments. You can use it to pay for purchases online, over the phone or in person. You can even use it to pay for goods and services in other countries. There are other advantages to having a Credit Card – many offer benefits such as rewards and insurance related coverages.
What is a Charge Card?
Charge Cards differ from Credit Cards as they give you the financial flexibility of no pre-set spending limit for purchases1, and you must pay the balance in full each month. No pre-set spending limit doesn’t mean unlimited spending. Purchases are approved based on several factors including your current spending patterns, payment history, credit record, and financial resources. Proof of resources and security may be required.
Discover American Express Card types
Different types of Cards exist so that you can choose the one that best suits your individual needs and the way you spend:
Understanding interest on purchases
It is important to remember that if you have a Credit Card and you don’t pay off your balance in full by the due date shown on your statement, you will be charged interest on all purchases shown on that month’s statement and interest will applied to your account. The amount of interest you may be charged is impacted by:
When you receive your statements, the details of your purchases and the amount of interest you have been charged will be clearly displayed.
Credit Card Fees
Some American Express® Cards charge an annual fee – The amount will vary depending on the Card you apply for, along with the benefits and features available to you on that card.
What is Credit Limit?
When you open your Credit Card Account you are assigned a Credit Limit which is the maximum amount that can be outstanding at any time on your account. Every Credit Card comes with a Credit limit.
Minimum Payments
You will need to pay at least the minimum payment requested by the payment due date shown on your statement. By paying off more than the minimum payment each month by the due date, you will pay less interest. To avoid paying interest, you should make a practice of paying your entire balance prior to your statement due date.
What is Credit Score?
Your credit score is one of your most important financial tools. Understanding your credit score can help you plan for the future and is a strong indicator of your likelihood of being approved for a credit card.
Where is American Express Accepted?
You can use your American Express Card for purchases big and small, including the places you love to shop at every day. American Express Cards are warmly accepted at thousands of Merchants across Canada.
Using your Card Abroad
American Express® Cards are accepted around the world, so you can have peace of mind when using your Card to make purchases overseas.
Useful terms
Statement period
The period in which the transactions reported on your statement relate to. Generally, your statement period will be every 30 days, the actual dates can vary slightly from month to month.
Interest
Each time you or any supplementary Cardmember charges purchases, funds advances, balance transfer and Amex cheques to your account, we make a loan to you.
Interest grace period for purchases
Interest will not be charged on purchases and you will have an interest grace period for purchases of 21 days from the closing date on your statement to the payment due date if every month we receive payment in full by the due date. Payment in full means payment of the total new balance shown on your statement which is made up of all charges to your account (including purchases, funds advances, balance transfers and Amex cheques, fees and other charges) up to the closing date.
If we do not receive payment in full by the payment due date, the grace period on your next statement will be extended to up to 25 days. The specific due date will be shown on your statement. Interest will be charged on any previous balances during this period. The grace period will revert to 21 days on the next statement after we receive payment in full.
If the due date falls on a weekend or Canadian federal or applicable provincial holiday, if we receive payment in full by the next business day, you will still have an interest grace period for purchases as set out in this section.
Travel Rewards Cards
Enjoy all the benefits, convenience and security of an American Express® Card - with the added bonus of earning points for travel when you use your Card.
SOME OF OUR FEATURED CARDS
AIR MILES Credit Cards
Get all the convenience and security of an American Express Card while earning AIR MILES® reward miles.
SOME OF OUR FEATURED CARDS
Aeroplan Cards
Get all the convenience and security of an American Express® Card while earning Aeroplan®* Miles.
SOME OF OUR FEATURED CARDS
Platinum Cards
Looking for something special? Then consider one of our Platinum Cards to experience a level of membership that complements and enhances your lifestyle.
SOME OF OUR FEATURED CARDS
Cash Back Credit Cards
Get all the convenience and security of an American Express Card while earning cash back on all your eligible purchases with the card.
SOME OF OUR FEATURED CARDS
No Annual Fee Credit Cards
Want a Credit Card that meets your needs without having to pay an annual fee?
SOME OF OUR FEATURED CARDS
Has talk of interest, annual fees, rates and percentages left you feeling confused?
Our simple Credit and Charge Card guides are a great place to start.
Where is American Express accepted
What Credit Card fees am I expected to pay
What is ‘Credit Limit’?
When you open your Credit Card Account you are given a Credit Limit which is the maximum amount that can be outstanding at any time on your account. Every Credit Card comes with a Credit limit. The Credit limit and the amount of credit available on the account will be shown as of the closing date on your statement.
For the most up to date information on the credit limit and the available credit on your Card account, you can log on to ‘Online Services’ to access information on your Card account. You may also call American Express Customer Service at 1-800-869-3016 to inquire about the available credit limit on your Card account.
What is a Charge Card?
The main difference of Charge Card from a Credit Card is that a Charge requires that the balance must always be paid in full each month.
What is my minimum payment on my American Express Credit Card?
The minimum payment due is the payment required to avoid your account going past due. The Minimum payment due is displayed on the Account Summary page within Online Services' and is also displayed on your statement. For more details on payments, please refer to your Cardmember Agreement.
How do we calculate interest on purchases?
Any interest on a purchase is charged from and including the day it is made (also referred to as the transaction date on your statement), or from and including the first day of the billing period in which the purchase is first charged to your account, if that is later, until the day we receive payment in full. For additional details please refer to your Cardmember Agreement and disclosure statement.
Explore Our Credit Cards
American Express Offers a range of Credit Cards with different rewards and benefits tailored to your lifestyle and interests.
1. No Pre-Set Spending Limit on purchases does not mean unlimited spending. Your purchases are approved based on a variety of factors, including your credit record, account history and personal resources. Proof of resources and security may be required.
®,™ : Used by Amex Bank of Canada under license from American Express
®*™ Trademarks of AIR MILES International Trading B.V. Used under license by LoyaltyOne, Inc. and Amex Bank of Canada.
®**: Aeroplan, AeroplanPlus, the Aeroplan logo, Fixed Mileage Flight Rewards and Market Fare Flight Rewards are registered trademarks of Aeroplan Inc.