Glossary
Offline Sale
An Offline Sale refers to a transaction method used when a credit card machine lacks a communication method to process an online transaction immediately. This situation typically arises in environments where network connectivity is temporarily unavailable or unreliable, such as in remote locations or during network outages.
During an offline sale, the credit card machine captures and securely stores the transaction data, including card details and the transaction amount. The date and time of the transaction are also recorded. Once the connection to the network is reestablished, these stored transactions are then transmitted to the appropriate financial network for processing.
This method allows merchants to continue conducting sales without interruption, even in the absence of real-time electronic connectivity. However, it carries certain risks, primarily related to the delayed processing of transactions. For instance, there may be a risk that a transaction is approved during the offline mode when it would not have been authorized in real-time, perhaps due to insufficient funds or flagged card status.
Merchants using offline sales modes are typically required to adhere to specific security standards to protect stored card information and must ensure that offline transactions are transmitted as soon as connectivity is restored to minimize risks and comply with payment processing regulations.