american express india credit and charge cards work

How Credit Cards and Charge Cards work?


There are lots of different types of Cards. Though often confused, Credit Cards and Charge Cards are actually different payment options. This section will explain how to choose and how to use a Credit Card and a Charge Card.

What is a Credit Card?

 

American Express Credit Cards offers you a line of credit which can be used to pay to merchants for the goods or services availed at the merchant. At the end of each month you will have the option of clearing the minimum due amount or pay at full. . There is an interest component that becomes applicable on any unpaid outstanding as on the due date of the card statement.

 


 


What is a Charge Card?


American Express Charge Cards offer a 'no pre-set' spending limit. This means that your charges are approved basis your spending pattern, financials, credit record and account history. Please note that 'no pre-set limit' does not mean your spending is unlimited. Charge Cards require that the full balance of money spent on the card each month is paid. In case of a partial payment/ no payment, a Late Payment Fee is applied to the account.

 

 


What are the differences between Charge Cards and Credit Cards?

 

American Express Charge Cards offer a 'no pre-set' spending limit. This means that your charges are approved basis your spending pattern, financials, credit record and account history. Please note that 'no pre-set limit' does not mean your spending is unlimited. 

 

However, many of us now need to have access to extra money instantly. We sometimes need to pay bills or make a purchase before we have the money in our bank account. This is when our spending power can be increased by a Charge Card or a Credit Card. Click on the button below to view all our credit cards and charge cards.


Understanding Card interest rate

 

 

When you use your Credit Card, you are borrowing money from a lender. It is important to remember that if you don’t pay off your balance in full every month you will be charged interest until full repayment has been received. This interest is applied to your closing balance at the end of every day, and then totalled up to form interest on your statement amount.

All types of Credit Card charge interest rates. The interest rate (Calculated as APR – Annual Percentage Rate) is determined by the type of Credit Card you hold. Conversely, Charge Cards do not have interest rates as a balance cannot be carried forward from month to month. There is no actual credit offered – so you don’t have to pay interest.

 

The amount of interest you will be charged depends upon:

  • The interest rate of your Credit Card
  • The amount you spend
  • When you pay your Credit Card bill
  • The type of spend whether purchases or a cash withdrawal

Card Balances

 

 

Overdue balances accrue interest every month. Different interest rates are applied for different uses of a Credit Card, for example balance transfers, cash advances and payments for goods and services. The interest rate is added to the outstanding balance on the Card.


What is Credit Limit?

 

Credit Cards come with spending limits. These limits are decided based on your credit rating. Card issuers use this to determine your suitability for a Credit Card. As you continue to use your Credit Card, your credit score improves – making it easier to get a higher credit limit.

 

Charge Cards have greater flexibility in spending with 'no pre-set' limit. This means that your charges are approved basis your spending pattern, financials, credit record and account history. Please note that ‘no pre-set limit’ does not mean your spending is unlimited. If you anticipate making an exceptionally large purchase, please call us in advance.

 

Find out more about your credit limit

 

 

 


Card fees and charges

 

 

American Express® Cards charge annual fee in return for rewards, features and benefits. American Express Credit Cards may or may not have annual fees. The amount will vary depending on the Card you apply for. Typically, the more rewards or features your Card has, the higher the annual fee. There are other standard charges and fees that may sometimes apply. All Credit Cards charge interest on outstanding balances for purchases, balance transfers and cash advances.

 


 


Charge or credit card: which is better for me?

 

 

Both Charge Cards and Credit Cards have their own distinct advantages. The way you plan to use it, largely determines which Card you choose. You should also consider which Card benefits appeal to you the most.
 

American Express is a leading provider of Credit Cards and Charge Cards worldwide.

 

We offer the best card if you want to:

 

  • Maintain a high credit score – Apart from managing your money, we can also help you to improve your credit rating. Our Charge and Credit Cards are fantastic if you want to maintain a high credit rating.
  • Earn rewards for shopping – Our Membership Rewards Card offer you rewards for shopping which can be exchanged for booking hotels, flights and a variety of other incredible rewards.

 

Learn more about our Rewards Cards

 

 

 


Useful terms

Credit and Charge Cards Explained

 

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.

 

What is Card Interest

What is Credit Limit

 

Earning Loyalty Points

 

Earn Air Miles

 

What is a Charge Card

 

What Card fees am I expected to pay

 

How to choose a type of Card

American Express® Benefits

american express india fraud and shopping protection

FRAUD AND SHOPPING PROTECTION

Your security and protection are our priority. Our technology has been designed to give you peace of mind when using your card.



 
american express india world class customer service

WORLD CLASS CUSTOMER SERVICE

Access to our customer service is available 24/7 by phone, text or email.




 
american express india contactless payments

CONTACTLESS PAYMENTS

Contactless is the quick, easy and secure way to make payments - Simply touch your American Express Card on the reader, wait for the beep and you're done. What's more, with Amex pay and Apple PayTM you can even pay with your phone.

 

Explore Our Credit Cards

American Express Offers a range of Credit Cards with different rewards and benefits tailored to your lifestyle and interests.