Charms are a prohibited use of artificing, essentially using the discipline to create a tangible effect which fools the bearer into believing it is doing something of which it is not capable. Charms are sometimes sold by disreputable artificers claiming to be able to sway love or luck, or to perform some other impossible task.
Kvothe was accused of selling a charm when Nina looked for him at the Fishery to tell him about the Chandrian, because he had given her a trinket and told her it was going to protect her from their return in order to make her feel better. He had not attempted to actually trick her, only to set her mind at ease, and did not charge her for the bauble.
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