Charge card system

A charge card system is a payment method where a cardholder uses a special card to make purchases or access services, and then pays the balance in full at the end of each billing cycle, usually monthly. Unlike credit cards that allow borrowing up to a limit and paying over time, charge cards require full repayment each period. This system helps manage spending and encourages responsible use, often offering benefits like rewards or security features. The issuer typically reviews the cardholder’s creditworthiness before approving a charge card.