What Is an Offline Debit Card?
An offline debit card is a type of automated payment card, similar to a traditional (online) debit card, that allows a cardholder to pay for goods and services directly from their bank account. As it is not "online," there is a delay before the incurred cost is debited from the account and it does not require a PIN for use. It is similar to writing a check. These types of cards are not common in the U.S. but are available in some foreign countries. Offline debit cards may also be known as “check cards.”
Key Takeaways
- An offline debit card is not connected to an online system when used. Funds are therefore withdrawn from an account 24 to 72 hours later.
- An offline debit card does not require a PIN for use, only a signature, and can be compared to writing a check.
- Offline debit cards are primarily used for payments and cannot be used for withdrawing or depositing funds at an ATM.
- Card network providers, such as Visa and Mastercard, sponsor offline debit cards.
- The same overdraft fees and returned payment fees of a debit card apply to offline debit cards.
How an Offline Debit Card Works
Offline debit cards work in a similar way as traditional debit cards but can also be compared to the process of writing a check. An offline debit card transaction creates a debit against the cardholder's bank account with delayed processing and only requires a signature rather than a PIN number.
Offline debit cards are issued by banks in partnership with a card network processing service provider such as Visa or Mastercard. These cards are associated with a customer’s bank account and are used for payments and are not available for making withdrawals or deposits from an ATM.
Offline Debit Card Transactions
Offline debit cards will often have a maximum daily limit that is lower than a standard debit card. If this is not the case, the maximum amount is based on the funds held in the underlying bank account. Because this debit card is "offline," the bank account is not accessed directly, meaning there's a delay of 24 to 72 hours before the amount of a purchase is debited from the account.
Users of offline debit card transactions must still be cautious of returned payment fees and overdrafts. While the processing time and services differ for offline debit cards in comparison to traditional debit cards, the repercussions for payments with insufficient funds are still the same. Account holders can expect an overdraft fee for each transaction that is made with insufficient funds using an offline debit card. In some cases, vendors who offer preliminary acceptance of an offline debit card payment that is not fully authorized at settlement may also incur a returned payment fee.
Offline debit card transactions do pose a risk for vendors as they are not certain the transaction will be fully completed until the processing is finished and accepted, days later. The vendor is susceptible to certain risks as the customer can charge the amount but perhaps the card is not valid or does not have the funds or the transaction is denied for some reason.
FAQs
An offline debit card is not connected to an online system when used. Funds are therefore withdrawn from an account 24 to 72 hours later. An offline debit card does not require a PIN for use, only a signature, and can be compared to writing a check.
What is an offline debit card? ›
An offline debit card is not connected to an online system when used. Funds are therefore withdrawn from an account 24 to 72 hours later. An offline debit card does not require a PIN for use, only a signature, and can be compared to writing a check.
How do offline credit card transactions work? ›
Offline credit card processing refers to the completion of credit card transactions without an internet connection. The card data is encrypted and saved by the payment terminal during the transaction and is transmitted to the merchant's bank and card network once an internet connection is restored.
What is the difference between online and offline cards? ›
Offline Debit Card vs.
An online debit card uses the EFT network to deduct funds from the consumer's account immediately. On the other hand, the offline debit card uses credit card networks to process the transaction in one to two business days.
Do debit cards work without internet? ›
An offline debit card can be swiped at a point-of-sale terminal like any other card. But instead of a PIN, a signature is requested. Since the card is not connected to an online system, the bank account is not accessed directly.
How does offline banking work? ›
Offline pay is a transaction processed asynchronously, with a delay in payment processing compared to real-time online payments. Offline payments are made using cash, cheques, bank transfers and postal orders. They exclude online payment options like cards and wallets.
How do offline card readers work? ›
How Does a Card Reader Work in Offline Mode? When a card reader is set to offline mode, it securely stores card payment details for processing at a later time. Once the device is reconnected to the internet, the stored transactions are completed.
What does "offline payment" mean? ›
Offline payment means a payment made without the instantaneous use of the Internet. Offline payment methods include cash payments, check payments, and bank transfers. It also includes postal orders, money order payments, wire transfer payments, or any other offline means.
What is offline spending? ›
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.
How do I use my virtual card offline? ›
As the name suggests, “ VIRTUAL”. Thus it is impossible to use it in offline stores. Virtual cards are meant to be used in online portals or transactions only. There is no way to use to in real world.
1) Offline application
- Visit your bank's nearest branch.
- Get the application form for applying for a Debit Card.
- Fill out the application and submit the same with any documentary proof if required.
- The bank will process your request and you will receive your Debit Card at your home in a few days.
Fraudsters can still use your debit card even if they don't have the card itself. They don't even need your PIN—just your card number. If you've used your debit card for an off-line transaction (a transaction without your PIN), your receipt will show your full debit card number.
What is a downside to using a debit card online? ›
Public internet networks at coffee shops, airports, and other public places may be where account hackers place devices that can intercept your debit card information if you go online to make a transaction. Use a strong password. Creating a complex password helps further secure your debit card.
How do I activate my debit card offline? ›
How to activate a Debit Card?
- Once you get your welcome kit from the bank, along with the Debit Card, there is an ATM pin given in a sealed envelope.
- When you go to the ATM, enter your Debit Card and enter the ATM pin provided in the welcome kit. ...
- Change your ATM PIN and use the card henceforth for regular transactions.
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.
