Advantages and Disadvantage of Offline and Online Payment Processing

Posted by Merchant Stronghold on July 21st, 2018

Offline vs Online Payment Processing – Most of the money transfer is done via the online payments method now. But everybody remembers the good old days when every transaction was done using the cash money or other valuable items. Surely, many people use cash money and offline payment is also used widely.

There are certain advantages and disadvantages of both of the payment methods. We will discuss the difference between both in details.

The difference between the Offline and Online Payment Methods?

Most of us clearly understand the difference between the two payment methods that we have. As simple as it sounds, the offline method uses cash money or other valuable items to make a payment/transaction. On the other hand, the online method does not involve any physical money while making a payment. But the thing is that many of us do not know how these payment methods are different in term of advantages and disadvantages.

In the next section of the article “Offline vs Online Payment Processing”, we will discuss the detailed difference between the both.

Advantages of Offline Payment Processing

There is a reason why most people around the globe still prefer to use cash for their daily money transaction. Some advantages of the offline method of payment are given below:

• The offline transactions are transparent. This means both the lender and receiver are sure about the transaction at the moment of the deal.
• Being a traditional method of payment makes it more trusted. People still trust the bank cheques and drafts and use them for payments.
• Offline mode of payment is direct and do not depend on any other source. For example internet or payment gateways.
• Easy to use and understand. Many people face difficulty with the online mode of payment.

Advantages of Online Payment Processing

In the war of Offline vs Online Payment Processing, the online method is winning so far. This is due to some advantages of this mode of payment.

• Online method is quick and easy. You can transfer a big chunk of money with just swipe of your finger.
• You have the record of all the payments. This helps in reducing the payment frauds.
• Speaking of frauds, the online methods are safer as the online payment gateway takes the responsibility for the money whiles the transactions.
• You can make a transaction in any part of the world without facing the issue of currency difference.
• Worldwide acceptance and 24*7 availability.

Disadvantages of Offline Payment Processing

There is also some disadvantage to the offline payment that makes the user go for the online method. Here is some notable disadvantage of offline payment method:

• The offline method is transaction is limited by many factors by distance and acceptance of another party.
• It not safe at all. The party on the receiving end will have to check and recheck the received payment.
• Not recommended for the transaction of a large amount.
  

Disadvantages of Online Payment Processing

There is a reason why offline payment method still exists even when the online method is winning in the Offline vs Online Payment Processing. This is because the online method is not as good as it sounds.

• Card frauds – All of us heard about the credit card and debit card fraud reports.
• The online method requires the person’s identity in order to make the transactions.
• Identity theft can cause the loss of money and data of an individual.

How Can Merchant Stronghold Help you With The Transaction?

We provide credit card processing services. Also, Merchant Stronghold specializes in high-risk and offshore merchant accounts. We can help you with the merchant account and online payment gateway. Additionally, if you are facing some issues mentioned-above then you can also get assistance regarding that. For all these services, call us at the toll-free number+1(888) 622-6875. You can also email us at info@merchantstronghold.com our 24/7 email customer service.

About the Author:

This article was written by Merchant Stronghold, a best High-risk Merchant Account & Payment Gateway Provider, It is specialized for credit card processing & offshore merchant account in a globe, Located in Clearwater USA. Our all-in-one merchant accounts include everything that a high risk or offshore merchant’s needs to process successfully. Processing Includes debit and credit card processing, check processing (ACH), payment gateways, and chargeback management services.