Amex Confirms that Green Card Is Still A Charge Card

You should have read by now about the relaunch of the American Express Green Card. I covered the news here in case you missed it. The card now has an increased bonus of 45,000 points that is targeted based on your location. There’s also some new benefits and credits.

What was strange about this relaunch, is that some websites were claiming that the Green card is no longer a charge card. After the relaunch it is just a credit card. CNN and MilesTalk both write that it is a credit card. That would be very strange, as the Gold card and Platinum card are both charge cards. And the Green card has always been a charge card. Maybe the confusion could have come from American Express representatives advertising it as a charge card that “acts as a credit card”. You don’t really hear “charge card” much anymore.

Also the language in the terms points clearly to the card being a charge card. It mentions an APR for “Pay Over Time”, which is a feature of charge cards. You can find the same language for the Gold and Platinum cards. Plus American Express has also confirmed on Twitter now that Amex Green Card is a charge card.

It is still considered a charge card. You can pay in full or carry a balance with interest on eligible charges, up to your Pay Over Time limit.

Credit Cards vs Charge Cards

There’s two main differences between credit cards and charge cards.

• Charge cards must be paid in full every month. With credit cards you can carry a balance. But most charge cards now have a ‘Pay Over Time’ feature which makes them more like a credit card and gives you the flexibility to pay less each month.
• Credit cards have a set credit limit. Charge cards generally have no preset spending limit. That doesn’t mean you can spend as much as you want thought. Charge cards will still have a unknown spending limit for the account based on your spending habits, income and credit score.

Why Does it Matter?

American Express has rules and limitations when it comes to credit cards. But most of the rules don’t apply to charge cards. So with Amex Green Card being a charge card, more people will be able to get it without having to jump through extra hoops.

• You can only have a maximum of 5 American Express cards (6 for some people). Charge cards are not included in the count.
• There’s also a 1/5 and 2/90 rule for credit cards. That means that you can only be approved for a new American Express credit card every five days, and only two within 90 days. Again, charge cards are not included. You can even apply for a charge card and credit card on the same day.

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