What is Offline Card Transaction? Definition and Meaning - Ikajo Glossary


Offline Card Transaction

Offline card transaction is a type of transaction when the person uses a credit/debit card to transfer money. The transaction goes the trader’s account from the checking via credit card processing network. When the customer wants to pay for goods/services he/she can usually choose from two types of payment: an offline transaction across a digital credit card network or online via EFT system. The fee for such transaction is charged from the trader and is around 2-3% of the sum of the purchase.

The main OCP advantage is the possibility to perform a transaction without an Internet connection. For example, this is a go-for option if you experience problems with Internet connectivity. Or if you work in a high number of the transaction industry. For instance, you might own a small cafe near the office building and serve a large number of orders. Then, you don’t have time to wait for the successful connection and PIN verifications.

Nevertheless, it also has disadvantages, among them the fact that the merchant must take on the danger of any expired, denied, or disputed payments. The OCTs are addressed for approval and securely eliminated from the mobile device as soon as it is back online.

Some examples:

My phone has no Wi-Fi connection probably I have to proceed to the OCT.

We can use an offline transaction during the festival because I suppose the connection will be weak there.

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