
Imagine it’s the busiest part of your day. You have a growing line of customers waiting to pay—and then the worst happens. Your internet goes out. How many sales would your business miss if you lost connectivity and couldn’t process credit card payments?
Whether you experience internet interruptions due to network outages, construction in the area, or other unforeseen issues, offline processing makes it possible to continue accepting payments to protect your profits. In the article below we explain what offline processing is, when you may need to use it, and how the feature benefits your business.
What is Offline Processing?
Processing a credit card payment requires an internet connection to verify cardholder information, receive an authorization, and complete the transaction. Without a connection, none of those steps are possible—unless your point of sale system has an offline processing mode.
Solutions that enable offline use allow you to continue taking payments without an internet connection.
When to Use Offline Payment Processing
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When Your Internet Goes Down
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When You Take Your Business Outside
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When You Operate in Various Locations
How Offline Processing Works
Offline processing is possible—you just have to get the right tools and know how to use them.
Step 1: Get a Terminal Built for Offline Payments
Not all terminals and point-of-sales systems are built the same. If you operate in an area where connection is spotty or you’re frequently on the move, you should ensure the solution you pick has offline capabilities.
One such solution available on the market is our own Exatouch® POS.
Step 2: Configure Your Terminal for Offline Mode
Depending on the system you use, you’ll likely need to change some settings in order to process cards offline. Part of this authorization process may include an acknowledgment of risk—more on that later.
Step 3: Enter Card Information
When your internet connection is down, your offline-enabled credit card processor will either function exactly as normal on the customer’s end—allowing them to swipe, insert a chip, or tap—or it will require manual entry of card information.
Step 4: Store Card Information Until You’re Back Online
When you process a card offline, the transaction information is encrypted and stored until you reconnect to the internet. Often, your provider will give you a set timeframe in which you must reconnect.
Are There Risks to Offline Transactions?
It’s important to note that offline processing is reliable and safe, but not risk-free. You may lose a sale if your system does not reconnect within a set safety window.
You may also lose inventory and money if transactions are ultimately declined when your internet connection is restored. Offline processing doesn't verify whether or not a card is invalid or stolen until you reconnect.
How to Limit Your Risk
Your payment processor likely has some rules in place that mitigate the risks of offline transactions. These can include limiting transaction totals, checking expiration dates, comparing the cardholder name and signature with a photo ID, or using a verification code. Exatouch has built-in features that allow you to set acceptable transaction parameters in offline mode.
Furthermore, systems like Exatouch are safer than alternative means of taking card information offline, such as taking physical copies of the card or card info.
Benefits of a POS with Offline Processing
- Take credit card payments when your internet connection fails
- Continue accessing the hardware you need to do business
- Give patrons a uniform customer experience
- Automatically sync transaction data once connectivity is restored
Watch this video to see how offline processing works in Exatouch POS:
Ready to Enhance Your Business?
If your current POS doesn’t provide offline processing, schedule a complimentary demo to learn more about Exatouch and all of the system's business-building tools and applications.