How does a charge card work?
There are a few minor differences, but overall, many of the aspects of the backend process are the same. Charge cards use “card networks” just like credit and debit cards use Visa, Mastercard, Amex, and Discover. These networks, along with the payment processors, facilitate the transfer of money from the card issuer to the merchant. The customer is then responsible for settling their “tab” every month with the charge card issuer.