Editing Charge card (section)

==Operation==
The user of the charge card has to pay their account balance at the end of each month and the charge card company, unlike a credit card, does not charge interest. A charge card company's main source of revenue is the [[merchant fee]], which is a percentage of the [[financial transaction|transaction]] value which typically ranges between 1 and 4%, plus an [[interchange fee|interchange]] or minimum fee.

Many charge cards have the option for users to pay for some purchases over time. [[American Express]] charge card customers, for instance, can enroll in the Extended Payment Option (internally referred to as ExPO) to be able to pay for purchases over $200 over time,<ref>[http://www.americanexpress.com/cards/expo/ American Express Extended Payment Option] {{webarchive |url=https://web.archive.org/web/20031206152359/http://www.americanexpress.com/cards/expo/ |date=December 6, 2003 }}</ref> or in Sign & Travel to be able to pay for eligible travel-related expenses over time.<ref>[http://www.americanexpress.com/cards/st/ American Express Sign & Travel]</ref>

Most charge cards also have a feature called No Preset Spending Limit (NPSL).<ref name=How2010NYT>{{cite news
|url=https://www.nytimes.com/2010/05/22/your-money/22money.html
|title=How the Finance Bill Affects Consumers
|author=Ron Lieber |newspaper=The New York Times
|date=May 22, 2010 |access-date=August 15, 2022}}</ref>  While consumers often take NPSL to mean that their cards are without limits, NPSL really means that a card's limit changes, often from month-to-month, based on factors such as consumer charging and payment history as well overall [[Economic indicator|economic trend]]s.  According to a [[WalletHub.com]] NPSL study, the way NPSL charge cards are reported to the major credit bureaus varies by issuer and can lead to artificial increases in credit utilization, thereby lowering one's [[FICO Score]].<ref>{{cite web |url=http://education.cardhub.com/no-preset-spending-limit-2010/ |title=No Pre-Set Spending Limit Credit Card Study – 2010 |publisher=CardHub.com |access-date=2011-06-23 |archive-url=https://web.archive.org/web/20110601020617/http://education.cardhub.com/no-preset-spending-limit-2010/ |archive-date=2011-06-01 |url-status=dead }}</ref>

[[Government]]s and large [[business]]es often use charge cards to pay for and keep track of expenses related to official business;<ref name=MerhFeeNYT>{{cite news
  |newspaper=[[The New York Times]]
  |url=https://www.nytimes.com/2006/03/04/business/yourmoney/tax-bills-and-plastic-dont-mix.html
  |title=Tax Bills and Plastic Don't Mix
  |author=Damon Darlin |date=March 4, 2006}}</ref> these are often referred to as [[purchasing card]]s. Many retailers and banks issue charge cards to customers. Some American Express and [[Diners Club]] cards are charge cards, rather than [[credit card|credit]] or [[debit card|debit]] cards such as [[VISA (credit card)|VISA]] and [[MasterCard]]. The [[Coutts]] Silk Charge Card and the [[Centurion Card]] are famous charge cards.