What is ‘Offline Debit Card’
A card that combines characteristics of both a traditional (online) debit card and a credit card, allowing the cardholder to pay for goods and services directly from his or her bank account. As with a traditional debit card, a transaction using the offline debit card creates a debit against the cardholder’s bank account. But unlike with a traditional debit card, no PIN is required during the transaction – all that is required is the user’s signature. These cards are generally issued by credit card companies in association with the bank in which the account is held.
Also known as “check cards”.
Explaining ‘Offline Debit Card’
This type of card will often have a maximum daily limit. 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.
Further Reading
- Banking the poor: policies to bring low-income Americans into financial mainstream – papers.ssrn.com [PDF]
- The economics of mobile payments: Understanding stakeholder issues for an emerging financial technology application – www.sciencedirect.com [PDF]
- Why use debit instead of credit? Consumer choice in a trillion-dollar market – papers.ssrn.com [PDF]
- … scoring bank customers direct deposit account transaction activity to match financial behavior to specific acquisition, performance and risk events defined by the bank … – patents.google.com [PDF]
- To buy or not to buy: Indian consumers' choice of online versus offline channels for air travel purchase – www.tandfonline.com [PDF]
