Charge card?

Recently when I was asked by my friend what is this charge card all about, I said "charge card not same with credit card meh?"

"No wor, I heard is something different"..

So I decided to check out what this charge card is, and ya, I found that my concept of credit card= charge card is wrong. So what is charge card?

While the usage of the charge card is similar to other payment cards such
as credit and debit cards, i.e. you can use the charge card to make payments at
merchants displaying the same charge card brand name as that on your charge card, there are some major difference between all these cards.

1st, while Credit Card allow minimum payment of 5% of monthly outstanding balance, Charge Card don't. Outstanding balance must be settled in full by due date.

2nd, while Credit Card allow you to have outstanding balance, they charge maximum 18% per annum on outstanding balance.

3rd, for late payment charge, Charge Card normally charge a 3.0% to 3.5% per month (36% to 42% per annum) on outstanding balance or fixed minimum amount whichever is higher. For Islamic charge cards, a fixed fee is normally charged up to RM70 per month. Credit Card only charge a maximum 1% per month on outstanding balance or RM5 whichever is higher.

Examples of charge cards are American Express, Diners Club International, and HSBC Amanah Mastercard.

So, if you have ample of money around, just that you don't want to carry cash around, Charge Card can be an option. Otherwise, Credit Card will be fine. By the way, if you have the discipline, Credit Card can be used like a Charge Card as well.