The term online vs. offline debit denotes the comparison between two distinct methods of making payment through a debit card. The former is a PIN based transaction and the later is a signature based transaction process.
Features of Online Debit Transaction
The online debit transaction is one of the popular transaction methods. This is preferred by most of the clients because the process is very fast as well as very safe in comparison to other methods of transaction. The debit cardholders use their card to pay for different kind of purchases.
For the purpose to such transactions, the magnetic card readers are used. The customer swipes their cards through the reader and the Personal Identification Number or PIN is entered in the machine.
By doing this, the exact price of the purchased commodity is transferred into the shop-owners account from the cardholder’s account. This process is safe and convenient for the shop-owners too because the shop-owners are not exposed to any kind of risk.
There are a number of requirements for the online debit transaction.
The customer should have access to the following facilities:
- Merchant Account
- Debit Processing Service
- Payment Terminal
- PIN Pad
Features of Offline Debit Transaction
These transactions take nearly three days for clearance. In this type of transaction, the cardholders are not required to provide their Personal Identification Number. There are a number of credit card companies that issue offline debit cards. These cards are accepted in all the shops where transaction through credit cards is allowed. Transaction on Internet is also allowed for these offline credit cards.
For the purpose of transaction, the cardholders give their offline debit card to the shop-owners. The card is then swiped trough the payment terminal and the transaction are almost done. After this the sales draft is signed by the cardholder and the respective shop-owner receives the transaction amount in a maximum period of three days. These transactions are subjected to transaction fees and a number of discounts that are also enjoyed by the debit cardholders.
Both these forms of debit transaction are preferred by the customers but if online vs. offline debit transactions are analyzed, the online transaction is preferred as it is more fast and convenient.