Offline Debit Transaction

An Offline Debit Transaction occurs when a debit card purchase is processed without requiring a Personal Identification Number (PIN). It is “offline” because the transaction amount isn’t immediately deducted from the customer’s bank account.

Instead, it’s processed through credit card networks, similar to a credit card transaction, which might result in a delay in reflecting the transaction in the customer’s bank account. This type of transaction is common in many countries and is often used for small purchases where the convenience of a quick transaction is preferred over the additional security of a PIN.

However, offline debit transactions carry a higher risk of fraud because they do not require authentication with a PIN. As a result, the transaction fees associated with offline debit transactions are often higher than those for PIN-based transactions.

Additionally, some banks may impose limits on the number or value of offline debit transactions that a customer can make in a day. Therefore, merchants should be aware of the potential costs and limitations associated with offline debit transactions and consider them when choosing payment processing options.