For Small Businesses
For Large Businesses
Advantages of Business Charge Cards and Credit Cards
Discover which type of Card is best for your business.
American Express Business Credit Cards and Charge Cards both offer a convenient way to improve your business’ cash flow while earning points1 on your essential purchases. However, there are a few things you’ll want to consider before choosing one that’s right for you.
What is a Business Charge Card?
A Charge Card is a Card with no pre-set spending limit2 or interest on purchases, as long as your balance is paid in full each statement period. As you establish a spending and payment history, the amount you can charge on the Card can grow.
Remember, no pre-set spending limit does not mean unlimited spending. Your purchases will be approved based on a range of factors.
A Charge Card is best for: Businesses with the need for greater spending power and a consistent cash flow, allowing them to reliably repay their monthly statement.
What is a Business Credit Card?
A Credit Card is a Card with a fixed limit that can be increased by request, up to a specified amount.
As with a Charge Card, you’ll pay no interest on purchases as long as the balance is paid in full each statement period. Should you choose to carry over an amount, you’ll be charged interest at the rate of your chosen Card.
A Credit Card is best for: Businesses looking for access to credit and the flexibility to pay off their purchases over time, according to their cash flow.
An overview of the differences
| Charge Card | Credit Card | |
|---|---|---|
| Pre-set spending limit | ||
| Bill must be paid in full monthly | (except for Minimum Payment Due) |
|
| Interest on late payments | ||
| Charge for overdue payment | ||
| Earns points1 If enrolled, fees may apply |
(except American Express Business Card) |
|
| Access to benefits e.g. Amex Offers |
Flexible Payment Option (FPO)
FPO2 is a Charge Card feature that allows you to carry over a portion of
your monthly balance up to the FPO limit and pay it off over time, instead of in full each statement period (interest charges apply).
It can provide you with instant access to a line of credit, without the need for you to dip into your personal savings, take out a loan or put up additional security.
Explore our range of Business Cards
Compare the features and benefits across our different Cards to find the
one that’s the best fit for your business.
More from American Express
Cash flow tools
See how features like up to 55 days to pay for purchases4 can help you make more of your on-hand capital or gain added breathing room around bills.
Streamlined application process
We’ve stepped out everything you need to know or have on hand before applying, to help make the process a smooth one.
1. Membership Rewards: Subject to the Terms and Conditions of the Membership Rewards program available here. Enrolment into Membership Rewards is required (an annual fee may apply). Eligibility to participate in the Membership Rewards program depends on your Card product type, and is subject to the approval of American Express.
2. No pre-set spending limit does not mean unlimited spending. Your purchases are approved based on a variety of factors, including current spending patterns, your payment history, credit records, and financial resources known to us.
3. With Flexible Payment Option, you will be charged interest if you do not pay your Closing Balance in full by the due date each month. Please refer to your monthly statements for the current Interest Rate and PDS for number of interest-free days. Eligibility criteria applies.
4. Extend your cash flow by up to 55 days: Depending on when you make a purchase, when your statement is issued and whether or not you are carrying forward a balance on your account from your previous statement period.