HSBC to pilot combined debit and credit card

HSBC to pilot combined debit and credit card

HSBC is collaborating with Visa on a six-month internal pilot of a combined multi-application credit and debit card.

The combined card offers both debit and credit functionality and enables the consumer to choose their preferred payment method at the point of sale using a single PIN.

HSBC has worked with smart card manufacturer Oberthur to develop the cards which use Visa's SimplyOne platform to mash up the debit and credit functionality.

The primary default payment (credit or debit) application is determined by the card issuer and is represented in the traditional way with the card number on the front and the card security code next to the signature strip on the reverse of the card. This is also the primary payment application encoded on the magnetic stripe for use in non-EMV countries.

The card number of the secondary payment application is printed non-embossed on the reverse of the card beneath the magnetic stripe, with the card security code alongside. The cardholder name, start and expiry date are the same for both payment applications so that both the debit and credit functions are available for use online and over the telephone.

Mariano Dima, EVP and head of marketing Visa Europe describes the six-month trial with 100 Visa and HSBC staff as "the first step towards the commercial issuance of multi-application cards in the UK".

David Robson, head of proposition development, HSBC, says: "We will be assessing the cardholder experience throughout the pilot and we believe our customers will welcome the flexibility offered with this card."

Comments: (3)

A Finextra member
A Finextra member 18 November, 2009, 23:09Be the first to give this comment the thumbs up 0 likes

How innovative - not! Australian banks have offered multifunction cards to their domestic customers for years. What next from HSBC? A cheque book?

Joe Pitcher
Joe Pitcher - Irrelevant - Wirral 19 November, 2009, 03:01Be the first to give this comment the thumbs up 0 likes

Hi Keith, how do the banks in Australia do it? I wasn't aware that they did, I only know about a Swedish bank doing this.

A Finextra member
A Finextra member 19 November, 2009, 10:12Be the first to give this comment the thumbs up 0 likes

The real issue with this is not whether the smart card will work, which it should do, but whether the acceptance infrastructure at retailers' points of sale - POS terminals and EFTPOS systems - allows a cardholder to choose the card type. I suspect that most terminals do not have this functionaility.

Incidentally, dual credit and debit cards have also existed in Finland for several years.

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