What is an offline debit card?

An offline debit card is a debit card for payments that are processed electronically but not instantaneously. They’re made in a similar way to online and mobile payments, only funds are deducted up to two business days after a purchase is made.

This article explains how offline debit payments work, their difference from mobile payments, and potential pros and cons of using offline debit cards.

How do offline debit card payments work?

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. So, the sale amount will not be deducted immediately or show up on an account record for up to 72 hours. It’s wise to ensure the account has sufficient funds during this period.

Because the process is similar to writing a check, offline debit cards may be referred to as "check" cards.

Potential reasons for using an offline debit card

Some of the possible reasons to use an offline debit card may include the following:

• Simplicity. Offline payments don’t require a PIN, and only a signature is needed to make transactions.
• Availability. Offline debit transactions can be processed even in the event of a power outage, making them a resilient option.
• Connectivity. As online payments are reliant on a functional internet connection, offline payments may be particularly helpful in rural areas and places where internet connectivity is unpredictable.

Considerations for using an offline debit card

When weighing up online and offline payments, one of the main drawbacks of being offline is a lack of real-time account information. An offline transaction can still be made even if there are insufficient account funds, leading to potential overdraft fees and penalties.

Transaction information that’s not current can also be hard to track if fraud detection is needed.

Tracking spending with offline debit cards

With offline payments being harder to track, these helpful tips can help to ensure smooth transactions:

• Manual expense tracking. Tracking expenses manually is essential with offline payments. This would involve inputting information into a tracker, like an app or spreadsheet.

• Monthly check-ins. Monitoring transactions regularly helps keep tabs on monthly expenditures. Create a digital or manual spreadsheet of offline outgoings and maintain a reliable month-by-month overview.

• Debit card transaction limits. Banks can implement a spending limit on debit cards. Check the account tools on a bank account app or contact the bank directly to place a cap on expenditures.

Learn about the PayPal Debit Card.