Alternate name: check card
If you bank with Chase, for example, you’ve likely been issued a debit card for your account. Your debit card can either be processed online or offline. While you may choose “debit” when running your debit card through a POS terminal, it would become an offline debit card if you were to choose “credit” instead. Choosing credit doesn’t mean your card goes offline in the literal sense. Rather, it refers to the fact that the transaction is not processed instantaneously.
How an Offline Debit Card Works
There are two main characteristics of an offline debit transaction: You do not need a PIN, and the funds are deducted one to two days after the transaction. Consumers swiping their debit cards are often given two options for processing the card: credit or debit. When “credit” is selected instead of “debit” for your debit card, you’re actually choosing to have the card processed offline. This means you do not need to enter your PIN. Next, your information is sent through the credit card networks. Offline debit card networks are run by either Visa or Mastercard, which are respectively named Visa Check Card and MasterMoney. Money will be deducted from your account and settled with the merchant within a few days.
Offline Debit Card vs. Online Debit Card
The major difference between an offline debit card and an online debit card is how they are processed. 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. When you choose to bypass your PIN to complete the transaction, your purchase is taken offline. This distinction is important because funds are not immediately deducted from the consumer’s account when run through credit card networks as an offline debit card. Here are some other key differences between the two.
