Compare charge cards and discover a world of financial flexibility and rewards. These unique payment tools combine the convenience of a credit card with the requirement to pay your balance in full each month, making them an attractive option for responsible spenders looking to avoid long-term debt.
What is a charge card?
Unlike traditional credit cards, charge cards do not have a preset spending limit, giving you more purchasing power. However, this doesn't mean unlimited spending – issuers still monitor your account to ensure you're not overextending yourself.
Who offers charge cards in Australia?
American Express dominates the charge card market, offering a range of cards packed with rewards and perks. Their flagship product, the American Express Platinum Card, is crafted from metal and has premium benefits.
Diners Club also offers charge cards, though they are less widely accepted. To compensate, Diners Club cards come with a linked Mastercard, allowing you to earn rewards on more purchases.
How to choose a charge card
When comparing charge cards, consider these factors:
- Sign-up bonus: Many cards offer generous sign-up bonus points when you meet a minimum spending requirement within a set time frame.
- Earn rate: Charge cards often boast higher rewards earn rates compared to credit cards.
- Rewards program: Flexible rewards like Membership Rewards or Diners Club Rewards let you transfer points to various airline partners, like Qantas and Velocity.
- Perks: Higher-tier cards include exclusive benefits like airport lounge access, travel insurance, and concierge services.
- Annual fee: Charge card annual fees range from a few hundred to over a thousand dollars.
- Statement period: Typically 44-51 days.
- Eligibility: Charge cards usually require a higher minimum income than credit cards.
Benefits of charge cards for businesses
Many business credit cards are actually charge cards, offering features like accounting software integration, additional cardholders, and detailed expense reporting.
- Accounting software integration (Xero, Quickbooks, MYOB, and similar);
- Additional cardholders (often free of charge);
- Airport lounge access, including entry passes into the exclusive American Express lounge network;
- Complimentary insurance, including domestic and overseas travel insurance;
- Data exports, itemised statements, and summaries for GST and FBT;
- Earning rewards points on eligible purchases, including on tax payments to the ATO.
If you're a disciplined spender seeking premium perks and rewards, a charge card could be a valuable addition to your wallet.
