How does a credit card differ from a charge card?
Both a credit card and a charge card allow its holder to purchase goods and services without cash. However, a charge card does not allow its holder to make partial payments of the balance each month. A charge card must be paid in full at the end of the billing cycle. Charge cards have almost completely been replaced by credit cards. American Express issues both charge cards and credit cards. Because charge cards do not allow a revolving balance and do not usually charge interest, they typically impose an annual membership fee.
