Federal Bank, in association with NPCI and Visa, has launched the new StarBiz Credit Card, specifically designed to meet the needs of small and medium enterprises (SMEs). This card marks Federal Bank’s entry into the business credit card segment and will be available in both RuPay and Visa variants. It can be availed by those who are using an Overdraft Credit Card account.
Joining/Annual Charges – ₹275 + GST (~₹325)
Shalini Warrier, Executive Director at Federal Bank, said, “SME customers play a very critical role in India’s growth and Federal Bank has always been at the forefront of providing innovative solutions to them. In continuation of that journey, we are excited to introduce FedstarBiz, a business credit card. The credit card is available in both Rupay and Visa variants. The card is linked to the customer’s Overdraft or Cash Credit account is designed to provide our business customers with the financial flexibility and security they need to thrive in today’s competitive environment.”
Rishi Chhabra Country Manager at Visa India, stated, “We are pleased to deepen our partnership with Federal Bank with the launch of Fedstar Biz, their first business-focused credit offering. This tailored payment solution will provide businesses with greater benefits, financial control and flexibility, supported by Visa’s global acceptance and top-notch security standards. We remain committed to enabling businesses of all sizes to thrive, backed by the Visa promise of trust, security, simplicity and convenience.”
Features of the Fed StarBiz Credit Card
- The card connects directly to existing Overdraft (OD) or Cash Credit (CC) accounts, with limits of up to ₹50 lakh, creating a unified financial ecosystem for businesses.
- The card allows transactions of up to ₹3 lakh per day, or up to the available limit on the linked account, whichever is lower.
- Advanced tokenization and encryption technologies protect every transaction.
- All card transactions are reflected in the underlying OD/CC accounts.
- Enjoy extensive merchant network coverage across India through partnerships with RuPay and Visa.
Eligibility for the Fed StarBiz Credit Card
Those who wish to opt for this card can contact their Relationship Manager or visit their nearest Federal Bank branch. Given below are some of the eligibility criteria one needs to complete in order to get this card.
- Active OD CC account – with limits up to ₹50 lakh.
- Constitution – Individuals/Sole Proprietors.
- MSME registered.
- Must be an Indian resident.
What is an Overdraft Credit Card Account?
Some banks offer a credit card that is backed by an overdraft account, which is usually linked to a current account. Here’s how it typically works: instead of a standard credit limit, an overdraft limit is assigned. You can use the card like a regular credit card, but the spending actually comes from the overdraft facility rather than a pre-set credit card limit.
Interest is charged only on the amount you use, not on the entire overdraft limit.
Bottom Line
The Fed StarBiz Credit Card marks a new beginning for Federal Bank, venturing into the business credit card segment. Although this is quite a unique offering, it cannot match the privileges and benefits offered by other business credit cards. Still, those with an overdraft credit card account can greatly benefit from this.
Why Should Businessmen Apply for the Fed StarBiz Credit Card?
- Flexible use of overdraft.
- Functions like a regular credit card for POS and online transactions.
- May offer lower interest rates than standard credit cards.
- Beneficial for self-employed individuals or business owners.