What is the difference between a credit card and a charge card?

The main difference between a credit card and a charge card is the type of account and how it’s used. A credit card allows consumers to borrow money from a credit card company up to a certain spending limit. The balance on the account then must be repaid, either in full or with interest. A charge card, on the other hand, is not a loan. The cardholder must pay the balance in full at the end of the month, or face late payment penalties. Credit cards are typically issued by banks, while charge cards are issued by companies like American Express. In Oregon, both credit cards and charge cards are regulated by the Oregon Consumer Credit Code, which is designed to protect consumers from unfair and deceptive practices and to ensure credit card companies abide by the law. This legislation requires creditors to provide cardholders with clear and understandable terms and conditions, impose limits on fees, and ensure that cardholders are provided with adequate notice of changes to their accounts. By following these requirements, Oregon credit card users can rest assured their financial accounts are safe and secure.

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What is the difference between a credit card and a charge card?

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