What Is The Difference Between a Business Charge Card and a Credit Card?
Business Charge Cards and Credit Cards can earn rewards and improve cash flow for your business.
What is a business charge card?
Business Charge Cards can allow your business to make bigger purchases with a flexible spending limit and optimise your cash flow management with an extended payment period of up to 54 days. A Charge Card has no pre-set spending limit for purchases and you must pay the Card’s full balance each billing period. Although Charge Cards do not have pre-set limits, you will not be able to make unlimited purchases on your Card, but you can expand on your purchasing power over time as your company establishes a good spending and payment history.
What is a business credit card?
Credit Cards give you the option to pay off your balance over time and help improve cash flow for your business. A Credit Card comes with a fixed limit on how much your business can spend each billing period. You can request to increase the spending limit on your Card up to a specified amount. Credit Cards allow you to pay your balance in full each billing period or carry a balance and pay interest charges.
Key Differences Between Business Charge Cards and Business Credit Cards
Feature
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Business Charge Card
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Business Credit Card
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Pre-set spending limit
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 |
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Interest charges |
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Subject to variable interest rates if you do not pay what you owe after the billing period ends |
payment Required |
Full payment required each billing period | Pay at least the minimum required amount each billing period |
Charge for Overdue payment |
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IMPROVED CASH FLOW |
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ANNUAL FEE |
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REWARDS |
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To learn more, explore our range of Business Cards.
Discover the benefits of our Charge Cards and Credit Cards to find the one that suits your business needs.
Frequently Asked Questions
What is the difference between Charge Cards and Credit Cards?
Credit Cards come with a spend limit each billing period and allow you to pay off your expenses over time with a revolving balance. Charge Cards do not have a pre-set spending limit and require you to pay off your balance in full each month. Charge Cards do not charge interest, while Credit Cards will charge interest if you only pay the minimum required amount each billing period.
Does opening a Charge Card affect your credit score?
Although Charge Cards can affect your credit score, they do not have as much of an impact as Credit Cards do. This is because Charge Cards don’t have a credit limit and are not factored into your credit utilisation ratio.
What happens if you don’t pay off a Charge Card?
Charge Cards require you to pay off your balance in full each month. If you do not pay off your full balance, you will face interest charges and other fees, and your Card might get cancelled.
