The electrochemical reduction of CO₂ is a reaction of much current interest as a possible reaction for energy storage. In this paper, we show that on electrodeposited palladium on platinum, a good formic acid oxidation catalyst, the onset potential for CO₂ reduction to formic acid is dramatically reduced in comparison to bulk palladium. Two different reaction pathways are observed; a pathway at low overpotential in which formic acid is produced from either direct bicarbonate reduction or from the reduction of CO₂ generated from bicarbonate near the surface, and a pathway at more negative potentials where formic acid is produced from direct CO₂ reduction. Furthermore, we show that reversible formic acid oxidation and CO₂ reduction is possible on this catalyst, although unfortunately the processes are hindered by poisoning of the catalyst, most likely by CO.