Which statement accurately describes charge cards?

The statement that charge cards must be paid in full by the end of the billing period is accurate and highlights a key feature of charge cards. Unlike credit cards, which allow users to carry a balance and pay interest on outstanding amounts, charge cards require the total balance to be settled before the next billing cycle begins. This characteristic encourages responsible spending, as users cannot accumulate debt over time, fostering a culture of payment discipline to avoid late fees or penalties.

Charge cards typically do not offer interest payments because they are designed for consumers who prefer to manage their expenses without the burden of financing debt. The other statements do not accurately reflect the nature of charge cards. For instance, they do not allow for interest-free payments over time since the entire balance must be cleared regularly. Unlike credit cards, they do not have revolving credit features, which permit ongoing borrowing against a credit limit. Additionally, while some charge cards may have high spending limits, they do not universally provide unlimited spending capabilities, as this could lead to excessive debt accumulation.