Is Amex the only well know charge card?

[Anonymous]

I think OP does bring up an interesting question as to why (almost) no other competitors have gone into this market, if it is still so profitable for Amex.  Yes, the risk model is different but issuers have a lot of products with varying risk.

I wonder if part of it is that it is hard, marketing wise, to go from credit card to charge card, without making promises you might not want to keep (such as larger purchasing power).   Whereas Amex, with its charge cards, could also offer customers credit cards for those that wanted that model (while adding pay-over-time stuff to the charge cards anyway).

I think that at one point, for a short time between 2000 and 2010 at a guess, my (Fortune 20) employer switched expense travel card from Amex to Citi Business (before switching back).  At the time I had assumed that the Citi card was a charge card but now I realize I don't have any basis for that.   We had to file expense reports quickly in either case!

[SRT4kid93]

@Anonymous 

yes thank you for getting back to my original questions and for backing up my question. I couldn't tell if I was being stupid by questioning why other companies don't offer charge cards. But you backing up my question shows it was a legitimate question. 

I thought maybe I was missing something but I racked my brain and still couldn't figure out why Amex was the only one

[FicoMike0]

I'm pretty sure there were charge cards before credit cards. The ones I remember we're store specific, a Sears, penny's or montgomery ward card. I think the early gas station cards were charge cards too. Again, the texaco card was only good there. Over time, they started offering revolving charge payment plans, but only good at one store.  Diners club came along and was good at more than one resturant. Amex followed. Amex got into Corp expense accounts, where time payment wasn't desired.

I think boa launched the first real credit card, which we now call visa.

So, I think the answer is, amex is the only one left, there have been many charge cards.

[FicoMike0]

There was carte Blanche too.

[Anonymous]

Actually charge cards are better than credit cards because they make you pay off your debt in full when it's due. If used correctly they would prevent a lot of credit card debt.  A credit card is an interest bearing loan. A charge card is an advance.

[Anonymous]

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@Anonymous wrote:

Actually charge cards are better than credit cards because they make you pay off your debt in full when it's due. If used correctly they would prevent a lot of credit card debt.  A credit card is an interest bearing loan. A charge card is an advance.

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Better for who?  The consumer?

I still am not sure why Amex is the only one.  If interest is important, other could follow Amex and include some credit card like features in a charge card, like pay-over-time.    Presumably there is some big reason why not that we don't know (which could be as simple as market research shows their customers don't see a need)

[SRT4kid93]

I think it could be seen as better or worse for the consumer depending on perspective.

yes- it's hard to get yourself in crippling debt by getting charged 30% interest every month 

but also, it's much easier to default because you need to pay your bill in full(now they offer pay over time) but they didn't used to.

[Kforce]

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@SRT4kid93 wrote:

Why are Amex's so popular?

Excellent advertising, customer service, and rewards.

I do not believe the issue of "revolver" vs "charge card" is of concern for most.

If one could gets 0.5%  better rewards on a "Visa" from "City" that was a revolver,

it would be popular.

If Amex cards switched to the "Visa network" and became revolver cards, very few would complain or leave.

If you give me 0.25%  better rewards on a "Visa" - Debit card, I would get it.     

[Anonymous]

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@Kforce wrote:

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@SRT4kid93 wrote:

Why are Amex's so popular?

Excellent advertising, customer service, and rewards.

I do not believe the issue of "revolver" vs "charge card" is of concern for most.

If one could gets 0.5%  better rewards on a "Visa" from "City" that was a revolver,

it would be popular.

If Amex cards switched to the "Visa network" and became revolver cards, very few would complain or leave.

If you give me 0.25%  better rewards on a "Visa" - Debit card, I would get it.     

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I agree.     But there is a slight disconnect in the model, at least for MyFico types.   One probable advantage of charge cards is that you are allowed to spend more (related to the pay-in-full requirement, forgetting pay-over-time type additions).  But they don't give you a figure so that you can brag on MyFico, I mean so you can plan responsibly.

For at least this population, knowing that with a BCP you would get say a $20K SL, whereas a Gold would give you an "official" $40K, might encourage some to work hard to justify the increased AF!

[Jeffster1]

@SouthJamaica is correct.

Carte Blanche and Diners Club had a great deal of panache in their day. The brands merged and I read somewhere recently that BMO  manages the accounts to this day.