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 terms of advantages and disadvantages. In the next section of the article “Offline vs Online Payment Processing”, we will discuss a 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. 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. Being a traditional method of payment makes it more trusted. People still trust the bank checks and drafts and use them for payments.
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.
Speaking of frauds, the online methods are safer as the online payment gateway takes the responsibility of the money during the transactions. Online method is quick and easy. You can transfer a big chunk of money with just a swipe of your finger. You have the record of all the payments. This helps in reducing the payment frauds. Worldwide acceptance and 24*7 availability. You can make a transaction in any part of the world without facing the issue of currency difference.
Disadvantages of Offline Payment Processing
It’s not safe at all. The party on the receiving end will have to check and recheck the received payment. The offline method is limited by many factors by distance and acceptance of another party. Not recommended for the transaction of a large amount.
Disadvantages of Online Payment Processing
Card frauds – All of us heard about the credit card and debit card fraud reports. Identity theft can cause the loss of money and data of an individual. The online method requires the person’s identity in order to make the transactions.
But the good news is these issues can be dealt with. You just need to reach the Merchant Stronghold for more information.