If you manually type in the credit card information you are processing credit cards offline. This process may include mail order purchases, COD orders, Returns, Store Credit or website shopping cart without a payment gateway.
The difference between Online and Offline debit card transactions is that Online requires the merchant to input their 4 digit PIN number and have their card swiped while Offline functions exactly the same as any credit card transaction.
What are the savings using Online Debit Card Transactions?
When a customer presents their card for payment and then enters a PIN number manually, the chances of fraud are extremely low. With this added security, the costs for pin based, transactions, or online debit card processing, can be much lower.
When conducting pin based transactions, merchants are charged a flat fee for each order instead of a percentage rate (discount rate) plus transaction a fee. Assuming a merchant takes 50 debit cards over the course of a month and averages $40 per sale, a conservative cost analysis shows that a merchant could save approximately $50 per month.
