Will That Be Debit or Credit?
A new card from Fifth Third Bank promises to make the often routine cashier question “debit or credit?” a lot more important for consumers who hold them. And it brings the bank a strategy for getting around at least some of the Durbin amendment’s interchange cap.
The question has long been vital to card issuers as the consumer's response signaled whether a debit transaction will be routed as one authorized by a PIN or by the use of the cardholder's signature. Debit transactions authorized by PIN brought a lower interchange rate, and card issuers have often put incentives in place to try to influence consumers to choose debit, even if the consumers often didn't fully understand what their choice meant.