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The main difference between a credit card and a charge card is the lack of interest rates and spending limits offered by charge cards. Charge cards have no interest rates because the borrower is required to pay off the entire balance on the card each month. There is no option to pay the minimum amount as with a credit card. There are however, fees associated with failure of payment.
Charge cards are a good source of funding for short-term purchases that can be repaid within a limited amount of time. Some businesses prefer a charge card for a self-imposed fiscal restraint because the card must be paid off in full every month. Depending on the issuer, some charge cards have greater reward benefits or other advantages like enhanced tracking, though this is dependent on the issuer. American Express is the only major credit card issuer to offer charge cards.