There will be 2 credit cards. One will be for customers that have a checking account with FSP Bank, and the other for customers without a relationship. You would see the rationale to this as you continue to read this page. Banking customers will get a Mastercard, and non-banking customers will get a Visa.
Non-Checking Customers
Such customers will receive a Visa card. Their credit limit will depend based on the application process, and the account will be determined every 6 months for an increase in credit line. Also, during this time, there will also be a valuation for interest rate changes. Simply put, there is nothing fancy about this card. Poor Credit Scores might have to put a security deposit to assure that some of the money will be recovered. However, beyond the valuation every 6 months, there is nothing else about this card.
Checking Customers
Checking customers will have a Mastercard. However, to reduce the waste of plastic, the card will be the same card as a Credit Card, or a Debit Card. There will not be 2 cards. When checking a balance, the customer will see how much they have in their checking account, and will also see the credit available vs. the maximum line. So how does FSP Bank determine if it is a credit or debit charge? All transactions requiring a PIN (Personal Identification Number) will use debit. All other transactions will use credit. If the customer wished to use the bank account for a transaction, they can log into their account, and pay that amount to their credit line.
Additional features will be cash back. For debit transactions, the cash back will be 1%. For credit transactions, the cash back is 1.5% on charge, and 1.5% on payment. Paying the interest does not provide for a cash back since this isn’t a legitimate purchase, but interest charged to the account.