Ohio-based Fifth Third Banks has combined a credit card and a debit card into one convenient piece of plastic. Introducing the Duo Card, which enables customers to either make a purchase using the funds available in their checking account or by tapping into a line of credit.
“Many consumers see the value in both debit and credit options and choose their payment method at the point of sale for a variety of reasons,” said Jon Groch, senior vice president and director of Bankcard Services for Fifth Third Bank, according to marketwatch.com. “The Duo Card gives these consumers the freedom to choose how to pay and access their cash without having to carry multiple cards.We believe the combination of added convenience, flexibility and security is a key differentiator for this product and we are pleased to offer this to our valued customers.”
When a consumer pulls out a debit card at the register, they are often asked by the cashier to select either the options “debit or credit.” The only distinction between the two is whether the customer has to punch in their PIN to complete the transaction or sign for it, because in both cases the funds are drawn directly from the checking account linked to the card.
With the Duo Card, if a customer wishes to use the funds in their checking account to complete the purchase, they would choose “debit” at the point of sale and enter their PIN number. They can also withdraw money from their account at an ATM. Otherwise, if the customer would rather complete the transaction using a separate line of credit linked to the card, they would choose to run the card as “credit” and sign to complete the purchase. Duo cardholders would receive separate monthly statements for the two accounts.
“Consumers today want payment cards that provide them the ability to make purchases when, where and how they want,” said Tim Murphy, chief product officer, MasterCard Worldwide, to the website marketwatch.com. “MasterCard and Fifth Third have a long track record of working together to meet the needs of both consumers and businesses. Today’s announcement reinforces this commitment.”