What is a charge card? How does it work? Differences with credit and debit cards explained (2026)

Key takeaways

• Charge cards let your business spend on a short-term line of credit with no fixed credit limit shown on the card, but you must pay the full balance every billing cycle or face high late fees and potential credit impact.

• Charge cards offer flexible spend and rewards, but they also come with strict repayment terms and high annual fees. They're now relatively rare compared to standard credit cards and debit cards in Singapore.

• Multi-currency corporate debit cards, such as Airwallex Corporate Cards, give you many of the same practical benefits – global acceptance, controls and real-time visibility – without a credit line, revolving debt or interest, making them a lower-risk option for everyday purchases. 

The Singapore cards and payments market is expected to more than double from about US$24.1bn in 2025 to roughly US$50.4bn by 2033¹, as businesses lean even more on cards and digital payment rails for everyday spend.

That makes choosing the right type of card structure – charge, credit, or debit – a critical decision for your finance team, especially as you juggle cash flow, FX costs and employee spend across markets. 

This guide breaks down how charge cards work, their key pros and cons, and how they compare with credit and debit cards. It also explains why many businesses are now shifting towards modern debit‑based solutions like Airwallex Corporate Cards to reduce risk and simplify global expense management.

What is a charge card?

A charge card is a corporate payment card that lets your business spend on a short-term line of credit and repay the full balance at the end of each billing cycle. Unlike credit cards, you can’t carry a balance from month to month, so the issuer doesn’t charge interest. However, you do incur late payment penalties if you miss the payment due date.

For businesses with disciplined cash flow, charge cards can offer higher effective spending power, stronger rewards and premium perks. However, they also come with strict repayment terms and sometimes higher annual fees. Later in this guide, we’ll compare charge cards with other corporate card options, including corporate debit cards that draw directly from your business account.

How does a charge card work?

A charge card lets your business spend on a short-term line of credit, with the understanding that you’ll clear the balance in full at the end of each billing cycle. To get approved, you typically submit an application to the card issuer, who runs a credit check to assess your business’s creditworthiness and financial track record. 

Instead of assigning a preset spending limit upfront, the issuer sets a flexible, implicit spending allowance that adjusts over time based on your credit profile, payment behaviour, and overall risk. Throughout the month, you can use the card for eligible business purchases up to this implicit limit. 

At the end of the billing cycle, you receive a statement summarising all transactions and the total amount due, and you must pay that balance in full by the due date. Missing a payment or paying late can become costly: you’ll typically incur significant late fees, and repeated late or missed payments can damage your credit score and make it harder to access financing or higher card limits in future.

Do charge cards still exist in Singapore?

Charge cards do still exist in Singapore, but they’re now uncommon and have largely been replaced by standard credit cards. In Singapore, American Express is the main issuer of charge cards, offering Corporate Green and Gold Cards for businesses and Personal, Gold and Platinum cards for individuals that all require you to pay off your balance in full each billing cycle.

These products are positioned at the higher end of the market, with annual fees on premium tiers reaching about S$1,744². As a result, many companies are opting for lower-fee alternatives such as multi-currency corporate debit cards that provide similar day-to-day spending flexibility without the high ongoing card costs. 

Pros and cons of charge cards

Charge cards are used by a relatively small share of businesses, but they remain popular for high-ticket travel and entertainment spend. They come with flexible limits and let businesses earn rewards on their spend. 

Pros of using a corporate charge card

• Flexible spend capacity: No preset spending limit on the card. Spend is approved based on your business’s profile and payment history.

• No interest when paid on time: If you clear the balance each cycle, you typically avoid interest charges altogether.

• Short-term cash flow support: Lets you delay payment until the statement due date without revolving debt.

• Built-in tracking and rewards: Itemised statements plus travel benefits and other membership rewards.

Cons of using a corporate charge card

• Must pay in full each month: Full balance is due every billing cycle, which can be tough with uneven cash flow.

• Costly missed payments: Late or missed payments attract steep fees and can hurt your business credit.

• Hefty annual fees: Often more expensive to hold than many business credit cards.

• Limited choice and stricter criteria: Fewer products on the market and tougher eligibility requirements.

For many teams, debit-based solutions such as Airwallex’s multi-currency Corporate Cards offer similar practical benefits – flexible card issuing, spend controls, real-time visibility and rewards – without relying on a credit line or risking compounding interest and expensive late fees.

Charge cards vs credit cards: key differences explained

As explained earlier, charge cards give you short-term access to a line of credit with no preset limit shown on the card, on the condition that you repay the full statement balance every billing cycle. By contrast, credit cards use fixed limits and allow you to make a minimum monthly payment, roll the remaining balance forward, and pay interest on what you don’t clear.

These differences become important when you look at how each card affects your cash flow and risk over time. A charge card can work well if your revenue is stable and you want to avoid normalising debt on everyday spending: the requirement to clear the balance each cycle enforces discipline, but it also leaves little room if invoices are delayed or you hit a slow month. 

A credit card, on the other hand, gives you more flexibility to smooth out timing gaps – but that same flexibility makes it easier to accumulate high-interest revolving debt if spending habits and approvals aren’t tightly controlled.

For a more detailed comparison, see our dedicated guide to charge cards vs credit cards.

Charge cards vs debit cards: key differences explained

Debit cards are directly linked to your business bank account, so you’re spending money you already have. Each transaction is deducted from your available balance, which means there’s no revolving debt and no interest charges. For most businesses, this makes debit cards a simpler, lower‑risk way to give teams card access for everyday business expenses.

By contrast, charge cards work very differently: as outlined in the earlier comparison with credit cards, they rely on a short-term line of credit, require you to clear the balance in full each billing cycle, and can quickly become expensive if payments are missed or delayed. 

Those same drawbacks still apply when you compare charge cards with debit cards. That’s why many businesses now prefer modern debit-based solutions – such as multi-currency corporate debit cards like Airwallex Corporate Cards – that offer global acceptance, spend controls and real-time visibility without taking on additional credit risk.

Airwallex Corporate Cards: The better alternative for business spending

Airwallex Corporate Cards are built as a safer, more cost-efficient alternative to charge cards and credit cards. They’re multi-currency debit cards that draw directly from your Airwallex Business Account, so your team can’t spend beyond the funds you hold and you avoid interest, credit-line risk, and late-payment charges on rolled-over balances.

With Airwallex Corporate Cards, you can instantly issue virtual cards and physical cards, set per-card budgets and merchant rules, and spend directly from balances in 20+ currencies with no foreign transaction fees or admin fees when you pay from held funds. When conversion is needed, FX is priced off interbank rates with a small, transparent margin, and there are no annual card fees. 

Because the cards sit inside the wider Airwallex Spend suite, you also get built-in Expense Management and Bill Pay, not just a standalone card product. Employees can capture receipts, submit expenses and get reimbursed from the same platform, while finance teams see card spend, reimbursements and supplier payments in real time, with data flowing into tools like Xero, QuickBooks and NetSuite for faster reconciliation.

On top of this, the Airwallex Business Account includes Global Accounts for receiving in multiple currencies and FX & Transfers for low-cost payouts to suppliers and teams in 120+ countries, plus batch transfers for up to 1,000 recipients at once. Together, these features let you replace fragmented charge/credit card setups and legacy bank tools with a single platform for managing global collections, payouts and company spend end to end. 

Frequently asked questions (FAQs)

Should my business use a charge card or credit card?

The right choice depends on how you manage cash flow and risk: charge cards suit businesses that can reliably clear their balance in full each month, while credit cards typically offer more flexibility but introduce interest costs and a higher risk of revolving debt. Many teams now prefer debit-based solutions such as Airwallex multi-currency Corporate Cards, which provide global acceptance, controls and rewards without a credit line or interest. For a deeper comparison, see our guide to charge cards vs credit cards. 

How do I apply for a charge card?

Applying for a charge card is similar to applying for a credit card: you complete an issuer’s application (often online) and provide details such as your business information, income, existing debts and contact details. The issuer then performs a credit check and reviews your credit report and profile before approving or rejecting your application. 

Is it hard to get approval for a charge card?

Approval for a charge card can vary significantly based on several factors, including the business's credit history, financial stability, and the specific requirements of the card issuer. Typically, charge card issuers look for a strong credit score and a history of responsible credit use. Businesses seeking to obtain a charge card must also demonstrate solid revenue streams and financial health.

How do charge cards affect your credit score?

Charge cards can help your credit score if you consistently pay your balance in full and on time, because timely payments build a positive payment history. However, missed or late payments are reported to credit bureaus and can quickly damage your score, and high unpaid balances may also be viewed as higher risk, even without a preset credit limit.

Sources:

1. https://www.marketdataforecast.com/market-reports/Singapore-Cards-and-Payments-Market

2. https://www.americanexpress.com/sg/charge-cards/platinum-card/?linknav=sg-amex-cardshop-details-browse-PlatinumCard

This publication does not constitute legal, tax, or professional advice from Airwallex nor substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.