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 transactionsoffline 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 