September 12, 2025

What is a charge card? How it works, key benefits, and best options for small businesses

Many business owners need ongoing access to working capital beyond what’s available in their bank accounts. While business credit cards and small business loans offer funding solutions, they often come with high fees and interest rates, making them costly financial options. Business charge cards offer an alternative that gives you more flexibility than traditional business credit cards.

What is a charge card?

A charge card is a type of payment card that requires you to pay your balance in full each month, unlike traditional credit cards, which allow you to carry a balance with interest. Most charge cards don't have a preset spending limit.

Originally introduced as an alternative to traditional credit cards, charge cards provide flexible spending without revolving debt. Like traditional credit cards, they're issued by major card networks like American Express, Mastercard, or Visa. Any merchant that supports these networks will accept charge cards.

How does a charge card work?

Charge cards allow you to buy goods and services just like a credit card. However, charge cards typically don't have a preset credit limit. Instead, issuers determine your spending power based on factors such as payment history, revenue, and overall account profile.

You also won’t accrue any interest on your charge card, though penalty fees and late fees may still apply if you don’t pay off your balance on time. Like a credit card, all your purchases will appear on your monthly statement, showing the full amount due.

Charge cards are typically only available to applicants with a strong credit history or reliable business cash flow. Issuers may also look at payment history, revenue trends, and overall financial stability to gauge whether you can manage the required pay-in-full terms.

Key features and benefits of charge cards

Charge cards offer key benefits and drawbacks that set them apart from traditional credit cards:

No preset spending limit

Unlike traditional credit cards, charge cards have no preset spending limit. Instead, lenders determine your spending power based on factors such as your payment history, business revenue, and overall financial health.

No interest if paid in full

Charge cards require you to pay the full balance at the end of each billing cycle. While that may sound strict, you won’t pay interest charges as long as you pay by your due date. This feature can help your business save money compared to carrying a balance on a credit card.

Flexible purchasing power

Since there’s no preset limit, you can use a charge card to cover large or unexpected business expenses. This flexibility makes them especially useful if your company has fluctuating expenses or has a large one-time investment coming up.

Rewards and perks

Many charge cards offer rewards as an incentive for spending, such as cashback, points, or miles, along with welcome bonuses or built-in partner offers. Premium charge cards may include airport lounge access, hotel elite statuses, and other business travel perks.

Cash flow and expense management

Charge cards can help your business manage short-term cash flow by allowing you to consolidate purchases into a single monthly payment. They also typically provide detailed expense tracking tools that make monitoring spending easier and streamline your accounting.

Drawbacks to consider

The biggest drawback to a charge card is the requirement to pay the balance in full every month. Missing a payment can result in steep penalty fees.

Some charge cards also carry high annual fees, which may outweigh the benefits if your business doesn’t spend heavily or take advantage of the rewards.

Best charge cards for small businesses

The right charge card for you depends on your business’s size, spending habits, and overall financial goals. Below are some of the best charge cards for small businesses, alongside their key features and pros and cons:

Ramp Corporate Card

Annual Fee
$0
APR
N/A
Pros:
  • Offers a comprehensive platform that includes expense management, travel booking, procurement, and accounts payable
  • Unique cost-cutting features and AI-powered savings insights to help companies reduce business expenses
  • No annual, application, or late payment fees
  • Access to over $350,000 in partner rewards and perks from leading companies
Cons:
  • Only available to US-based corporations and LLCs, excluding sole proprietors and unregistered businesses
  • Requires a minimum of $25,000 in a business bank account to qualify
  • Balances must be paid in full each month, which may not provide the flexibility some businesses need for managing cash flow

The Ramp Business Credit Card is purpose-built to save your business time and money. Unlike traditional business credit cards, Ramp's corporate charge card actively helps you spend less. Automated expense management coupled with AI-driven savings insights helps you identify and reduce unnecessary costs, leading to an average savings of 5% a year across all spending.

Ramp doesn't charge interest or fees, and there's no credit check or personal guarantee required. Additional perks include real-time expense tracking, seamless integrations with business accounting software and ERPs, and unlimited free physical and virtual employee credit cards.

Capital One Spark Cash Plus

Annual Fee
$150
APR
N/A
Foreign Transaction Fees
$0
Rewards
Cashback
Pros:
  • Unlimited cashback rewards
  • No preset spending limit
  • Offers $150 statement credit to offset annual fee
  • 0% interest when used as intended
  • Early spending bonus
Cons:
  • 2.99% monthly fee on late payments
  • Must spend $150,000 per year to access the $150 statement credit
  • Limited spend management features

The Capital One Spark Cash Plus earns unlimited 2% cashback on all purchases with no category restrictions, making it an ideal choice if your business has diverse spending. You can also earn 5% back on hotels and car rentals booked through Capital One’s travel site.

Additional benefits include free employee cards, no foreign transaction fees, and an extra $2,000 bonus for every $500,000 your business spends in the first year.

The Business Platinum Card from American Express

Annual Fee
$695
APR
18.49%–27.49% variable with Pay Over Time
Foreign Transaction Fees
$0
Rewards
Points
Pros:
  • 5x points on flights and prepaid hotels booked via Amex Travel
  • No preset spending limit
  • Complimentary Marriott Bonvoy Gold Elite and Hilton Honors Gold status
  • Access to airport lounges and other travel perks
  • No foreign transaction fees
  • “Pay Over Time” offers payment flexibility on eligible purchase
Cons:
  • High annual fee of $695
  • Rewards program is relatively complex
  • Benefits are primarily travel-focused, less so on other business expenses
  • Requires full balance payment each month

Designed for frequent travelers, the American Express Business Platinum Card offers 5x Membership Rewards points on flights and prepaid hotels booked through Amex Travel, plus 1.5x points on eligible business categories or purchases over $5,000.

The Amex Business Platinum features premium perks such as airport lounge access, airline fee credits, and hotel elite status. The $695 annual fee is steep, but these high-value rewards and travel benefits make it ideal if your business spends heavily on travel and large purchases.

American Express Business Gold Card

Annual Fee
$375
APR
18.49%–27.49% variable with Pay Over Time
Foreign Transaction Fees
$0
Rewards
Points
Pros:
  • High rewards rate in top spending categories
  • Flexible points system with numerous redemption options
  • No international transaction fees
Cons:
  • High annual fee
  • Rewards capped for 4x earnings
  • Requires good to excellent credit

The American Express Business Gold Card offers 4x Membership Rewards points on your top two eligible spending categories each month (up to $150,000 annually), such as advertising, gas, dining, and technology. It has no preset spending limit and adjusts based on business needs.

Additional perks include travel benefits, purchase protection, and employee card options. While it carries a $375 annual fee, you can offset the cost if you fully maximize its rewards.

Nav Prime Card

Annual Fee
$600 ($49.99 monthly)
APR
N/A
Foreign Transaction Fees
N/A
Rewards
N/A
Pros:
  • No credit check
  • No security deposit
  • Builds business credit history with major credit bureaus
Cons:
  • $49.99 monthly fee
  • You must pay your balance in full each month
  • No rewards or perks

The Nav Prime Card aims to help small businesses build credit without a personal credit check. Unlike traditional credit cards, it has no preset credit limit and requires linking a bank account, which serves as the funding source for purchases.

With no interest charges, it’s an ideal option if your business needs to establish credit, manage cash flow, and gain financial insights without the hurdles of traditional credit approval.

Summary of the best business charge cards

Ramp Corporate Card
The fastest, easiest way to manage expenses.
  • Corporate card with customizable spending controls
  • Cashback rewards on purchases
  • Unlimited free physical and virtual employee cards
  • Must have $50,000 in a business bank account to qualify
  • Balance must be paid in full each month

Annual Fee

$0

APR

N/A

Capital One Spark Cash Plus
Best for simple cashback
  • Business charge card that requires full monthly balance payments
  • Designed for larger, higher-spending businesses
  • Carrying a balance incurs a 2.99% late payment fee
  • 2% cashback rewards on purchase

Annual Fee

$150

APR

N/A

FX Fees

$0

Rewards

Cashback

The Business Platinum Card from American Express
Best for luxury travel perks
  • Travel rewards credit card focused on international travel
  • Provides 5x membership rewards on flights and prepaid hotels booked through American Express Travel
  • Additional rewards on eligible purchases
  • Carries a $695 annual fee
  • Sizable welcome bonus with

Annual Fee

$695

APR

18.49%–27.49% variable with Pay Over Time

FX Fees

$0

Rewards

Points

American Express Business Gold Card
Best for high-spending rewards
  • Earn 125,000 membership rewards points after spending $10,000 within the first three months of card membership
  • $375 annual fee
  • 4x points on your top two eligible categories
  • 3x points on flights and pre-paid hotels booked on AmexTravel.com
  • 1x points on all other eligible purchases
  • $240 flexible business credit for purchases at select business merchants
  • $155 Walmart+ credit

Annual Fee

$375

APR

19.49%–28.49%

Nav Prime Card
Best for Nav Prime subscribers
  • Business credit-building card designed for small businesses
  • Reports payment activity to major business credit bureaus
  • No personal credit check required for application
  • Allows businesses to manage expenses and build credit simultaneously
  • Requires a Nav Prime subscription to access

Annual Fee

$49/month (via Nav Prime subscription)

APR

N/A

At Ramp, transparency and integrity are core values guiding our content. We believe in the exceptional value of our products, which may shape our perspective. Our methodical approach involves competitor analysis, comparison of credit cards, and frequent reviews to maintain reliability. Review our full methodology for choosing the best business credit cards.

How do charge cards affect your credit score?

A charge card will not affect your personal FICO score, but it will impact your company’s business credit score. Charge card issuers will send your payment history to the major business credit bureaus. However, they will not affect your credit utilization ratio since there is no preset limit.

Payment history is the most important component of your business credit score. A charge card impacts this category, but it also plays a role in the age of your credit, inquiries, and credit mix. Each of these factors also contributes to your business credit score.

If you take out a charge card and pay the balance in full each month, your business credit score will go up. A higher business credit score will help you qualify for better rates and terms on future business loans. However, falling behind on charge card payments and making late payments will negatively impact your credit score.

Charge cards vs. credit cards vs. debit cards

Charge cards are ideal for businesses that can pay in full each month and want flexibility and higher spending power. Business credit cards offer the ability to carry a balance at the risk of high interest charges. Debit cards keep things simple, letting you spend only what’s in your account, though they lack the financing power and perks of the other options:

Feature

Charge cards

Business credit cards

Debit cards

Credit limit

No preset limit; spending adjusts based on history

Fixed credit limit; requires manual request for an increase

Limited to the funds in your linked bank account

Spending power

Increases automatically based on payment history

Limited by the assigned credit limit; can request increases every 6–12 months

Tied directly to your available account balance

Balance carryover

You must pay in full each month

Can carry a balance but accrues interest

No balance carried; purchases withdraw instantly

Interest charges

No interest (since full balance is required monthly)

High APR on unpaid card balances

None, since you’re using your own funds

Credit utilization impact

Doesn't impact credit utilization ratio

Affects credit utilization ratio, which can influence credit score

Typically, no effect on credit; activity not reported

Access to more capital

Readily increases spending ability based on payment patterns

May require personal loans or financing for additional funds

No borrowing ability; spending capped at account balance

Rewards & bonuses

Offers welcome bonuses, rewards programs, and perks

Also offers rewards, bonuses, and perks

Limited; some debit cards offer basic rewards

Flexibility

Greater flexibility due to no preset limit and automatic spending adjustments

More restrictive due to fixed credit limits

Typically, no effect on credit; activity not reported

How to choose the right charge card

When comparing charge cards, keep these factors in mind:

  • Business needs and spending habits: Consider how much your company spends each month and whether you need flexibility for large or variable expenses
  • Rewards card programs and perks: Look for cards that align with your priorities, such as cashback, travel benefits, or partner discounts
  • Fees and penalties: Weigh annual fees, late payment penalties, and other potential charges against the value of the rewards and perks
  • Approval requirements: Check eligibility criteria, such as minimum credit score or business cash flow requirements, before applying
  • Tips for evaluating options: Compare at least two or three cards side by side, calculate the net value of rewards after fees, and choose one that fits both your budget and growth goals

Grow your business with the Ramp Business Credit Card

Charge cards let businesses access more capital than they could with traditional credit cards, but most charge cards don’t offer much beyond the basics. That’s what makes the Ramp Business Credit Card stand out.

There’s no annual fee, no interest, and no personal credit check or guarantee required. If you have at least $25,000 in a U.S. business bank account, you can get approved in 48 hours or less.

Set custom spending controls on employee credit cards, create unlimited virtual cards for specific teams or vendors, and automate expense reporting with smart integrations that capture receipts automatically. You’ll also get over $350,000 in partner rewards and perks.

Ready to learn more? Try an interactive demo and see why Ramp is the best charge card for small businesses that want more than just spending power.

Try Ramp for free
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Marc GubertiCPFC, Finance Contributor
Marc Guberti is a certified personal finance counselor and a freelance writer. His work has been featured in US News & World Report, Newsweek, Fox Business, and other publications.
Ramp is dedicated to helping businesses of all sizes make informed decisions. We adhere to strict editorial guidelines to ensure that our content meets and maintains our high standards.

FAQs

Business charge cards help manage cash flow by offering flexible spending without a preset limit while requiring full payment each billing cycle. This ensures your business avoids long-term debt and interest charges, promoting financial discipline. However, you must have strong cash flow to cover expenses each month.

Using a charge card responsibly can help build your business credit. Credit card issuers typically report your payment history to major business credit bureaus, and consistent on-time payments strengthen your company’s credit report and score.

Annual fees vary by issuer and the type of card. Some charge cards, such as Ramp, have no annual fee, while others, especially premium cards with travel perks, can cost several hundred dollars per year.

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