What are Offline payments?
Offline payments allow you to continue accepting card payments even when your point-of-sale device loses its internet connection. Your POS device still needs to be connected to a PayPal Reader to accept payments.
How it works
When you accept a payment offline:
- Transaction is stored securely – The payment information is encrypted and saved on your POS device.
- Automatic processing when back online – Once your internet connection is restored, queued transactions are automatically sent for authorization.
- Card-present authorization – These transactions are submitted to your customer's bank as card-present authorizations, with the required deferred authorization indicators to meet the card network requirements.
How do I start using offline payments?
Reach out to your Point of Sale (POS) provider to help you with the onboarding process.
Do I need to restart the card reader, or do anything else to start accepting offline payments?
Make sure your PayPal Reader software is up to date. You can check this in your point-of-sale app, under card readers.
Merchant responsibilities when accepting offline payments
You assume all risk associated with any declined, expired, or disputed transactions. PayPal is not responsible for any loss of goods caused by declined, expired, or disputed processes. By using Offline Payments, you are aware and accepting the associated risk, and the potential for missed funds.
Read about offline payments in the PayPal Point of Sale Terms and Conditions.
What are the transaction limits for Offline payments
Transaction limits for Offline payments are enforced per point-of-sale device: Per-transaction limit (local currency): the maximum amount of an offline payment. Total accumulative offline transaction limit (local currency): the maximum total for queued payments.
The offline transaction limits are:
- Per-transaction limit: $1,000 USD
- Total accumulative offline transaction limit: $10,000 USD
What are the time limits for offline payments?
24-hour requirement
You must reconnect your POS device to the internet within 24 hours of taking your first offline payment to upload and process queued transactions. Failing to connect to the internet within 24 hours will increase the risk of transactions being declined and therefore merchandise being lost.
After 24 hours with no connection
If your device remains offline for more than 24 hours, the offline payments functionality will be paused. You won’t be able to accept new offline payments.You must connect to the internet to process queued transactions and to resume accepting payments.
What best practices are recommended when using offline mode?
Protect Your Stored Transactions
Critical: Do not uninstall your POS app, clear your device cache, or factory reset your device while you have unprocessed offline payments. These actions will permanently delete all stored transactions that haven't been uploaded yet, and they cannot be recovered. Always ensure you've reconnected to the internet and all queued payments have been processed before performing any of these actions.
Keep Reconnection Times Short
Reconnect to the internet as soon as possible—ideally within a few hours rather than waiting the full 24 hours. This significantly reduces the risk of declined transactions and ensures you receive payment for goods or services already provided.
Maintain Normal Customer Experience
For security reasons, avoid mentioning to customers that their payment is being processed offline. The offline experience should be seamless and invisible to your customers.
Frequently asked questions
Which card types and payment methods can be accepted offline?
- Visa, Visa Electron
- Mastercard, Maestro
- American Express
- ApplePay/Google Pay are also supported
Note: Offline Payments are only supported for chip and contactless payments. Magstripe (swipe) is not supported.
Will offline mode work with all card readers, apps and integrations?
Offline payments require a PayPal Reader running the latest software. Note: Offline payments are currently only available to merchants who use PayPal Point of Sale with third party apps integrated via some SDK partners.
Is tipping supported for offline payments?
Yes, tipping is available in offline payment mode. Note: Tips amount count towards the offline transaction limits.
Can I cancel or refund an offline payment?
Refunds can only be issued after a payment has processed. Connect to the internet and process queued transactions. You can then refund any authorized payments.
