A charge card is similar to a credit card, except that the charges made to it must be paid-off each month, rather than having revolving credit which carries a balance forward. Many people are not aware of this distinction however, and often interchangeably use "charge card" to describe any card which can be used as payment , or "credit card" for any credit or charge card.

Governments and large businesses often use charge cards to pay and keep track of expenses. Some high-end retailers like Neiman Marcus issue charge cards to customers. American Express and Diners Club cards are also charge cards, rather than credit or debit cards like VISA and MasterCard.