Offline Processing

Offline Processing refers to transactions that take place when the payment processor is not connected to the network in real-time. In offline processing, the card details are collected and stored securely to be processed at a later time.

This method is used in situations where an immediate connection is not possible or practical. However, it does increase the risk of fraud and non-payment since the card cannot be checked for validity or sufficient funds at the time of the transaction.

Offline processing is typically used in remote areas where internet connectivity is unreliable or non-existent, or in situations where a real-time connection is not necessary, such as batch processing of recurring payments.

While offline processing can be convenient in certain scenarios, it also poses several challenges. For example, the merchant may be at a higher risk of accepting a transaction that will ultimately be declined due to insufficient funds or a lost or stolen card.

Therefore, merchants using offline processing must have adequate risk management strategies in place to minimize potential losses.