Charge card

Debt Term

A charge card is a special type of credit card whose balance must be paid in full when a statement is sent. American Express is the best-known charge card.

Since statements are typically issued monthly, that means a charge card on average delays cash payment for purchases by two weeks, which improves cash flow versus paying by cash or check immediately upon purchase.

Along with cash flow improvements come rewards; these benefits must be balanced against annual fees typically imposed by chard card issuers.

Don Gooding

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