What is the charging card?

It must not be confused with a credit card, a fee card, is a means of purchasing products and services for short -term credit. The most recognized company trading is American Express. Some other companies, including Diner's Club. In certain situations, MasterCard also attempts to build the presence on the charge market. Understanding these factors is critical before using such a card. While many appreciate credit cards because they have the opportunity to make purchases and repay the balance over time, often months or years, the charging card does not offer any such generous framework. The charge card must be returned by the date of the next billing statement in full. However, if the fees publisher believes that you will not be able to pay the company back and charge prioto when issuing a statement. So even if there is no preset limit, there is certainly a limit that the company will allow the consumer to charge before cutting off the privileges. This is doneIt is purely as protection for society.

with card for fees is usually no interest because there is no long -term debt. Companies with charging cards usually earn their money in one of the two ways: by billing the card and posting fines, if the balance on the card fees is not paid or is not paid in full. The penalty of balance, which is not in full, can often be up to 5 percent.

While the charging cards often make general practice to collect the entire excellent balance every month, some start exceptions to this rule. For example, American Express, in some cases and if the card holder registered and pay them back over time. In addition, if the only purchase is more than a preset scale, usually $ 200, this amount may also be returned to a certain period of time. In this way, charging cards are very similar to credit cards.

Before making a large purchase or putting all fees on fees, it is important that the card holder assures that this is a possibility. If not, the card holder could be left with a large balance and to be assessed by a significant punishment.