Revolving Credit Cards

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API References:

• Create a credit card

Mbanq Cloud's CORE capabilities empower fintechs and neo banks to launch Revolving Credit Cards, offering numerous advantages for both banks and customers. With revolving credit cards, the balance is not due at the end of the billing period. Typically such cards instead require a minimum payment which is some percentage of the total balance outstanding. Interest is accumulated on the unpaid balance, which is added to the amount owed. Over time, the amount of interest owed can become substantial, even as much as the original purchase. There are two main types of revolving credit cards:

• Unsecured Cards - Credit cards where the entire balance is at risk and not secured by another asset such as a cash account or collateral.
• Secured Cards - Credit cards where all or a portion of the open balance is secured by another asset such as a cash account.

The universal acceptance of credit cards, especially those on the Visa and Mastercard networks, simplifies payments for services like hotels and car rentals. Unlike with debit cards, where amounts may need to be blocked, credit cards allow for more flexibility as charges can be made as needed, providing a smoother experience for customers.

In summary, leveraging Mbanq Cloud's CORE capabilities enables fintechs and neo banks to offer revolving credit cards, benefiting both banks / platforms and customers alike. The flexibility, rewards, consumer protections, universal acceptance, and credit-building potential make revolving credit cards a valuable financial tool.