These cards are similar to credit cards. They allow you to pay for goods and services on interest-free credit. However, the balance owing must be paid in full each month or you may incur additional fees. Most charge card companies also offer rewards systems for their customers. These can include cashback schemes, discounts, free services and points systems that you can use towards various purchases etc. In order to be able to offer this service, including benefits and interest-free credit, charge cards normally have an annual fee.

The two largest charge card companies in the UK are American Express and Diners Club International. Some high street banks also issue Visa or MasterCard charge cards.

Charge cards, also called travel and entertainment cards, have no credit limit. You can usually charge as much as you want, but you are required to pay off your entire balance when your bill arrives. However, if you charge airfares, cruise fees or hotel fees for a hotel room booked through a travel agent on a charge card, you can usually pay off your balance over a number of months.

Charge card companies make their revenue by charging annual fees and by charging merchants a fee each time a customer pays using the company's charge card.

If you don't pay your charge card bill in full you'll get a one-month grace period, when no interest is charged. After that, you'll be charged interest. If you don't pay back the full amount owed after a specified amount of time, your account will be closed and your bill sent to the collections department.

Most charge card issuers will require that you have a certain salary level before you qualify for a card and will generally expect you to have a very good credit rating as well.