Originally Posted by
Low Roller
I've never really understood why people make such a big deal about Amex issuing "charge cards" instead of "credit cards". Other than the ability to carry a balance (which is generally a bad idea anyway), is there any real distinction?
Naturally depends where you are in the world. In the UK a credit card is regulated by the Consumer Credit Act whereas a charge card isn't.
One of the benefits of the CCA is that it makes the card issuer jointly liable with the merchant for all purchases over £100. So you order a new sofa for £2,000 and the furniture company goes bust before it delivers it to you, with a credit card the card issuer would have to refund the £2k whereas with a debit or charge card its up to you to try and get the money back from the administrators of the company (so if lucky you'll get £20 back). Or if you buy something whilst on holiday that turns out to be faulty, rather than try make an international claim against the shop in India you can just claim against your card.
The UK charge cards do go to some extent to offer insurances that are similar to what a credit card would give you but they are not as complete and evidently not statutory rights.