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UniPayGateway

July 24, 2014
Written by
James Davis
Written by James Davis
Senior Technical Writer at United Thinkers

Author of the Paylosophy blog, a veteran writer, and a stock analyst with extensive knowledge and experience in the financial services industry that allows me to cover the latest payment industry news, developments, and insights.

My works have been cited across media and payment blogs. I do my best to help businesses make the most efficient financial decisions that can positively and significantly improve their business growth.

Whether you are a seasoned investor or just starting out in the world of payments, my writing is designed to be accessible to everyone and help people navigate the complex world of payments. So if you want to stay up-to-date on the latest trends and insights in the payment industry, be sure to check out Paylosophy and my published works.

Reviewed by
Kathrine Pensatori
Product Specialist at United Thinkers

Product specialist with more than 10 years of experience in the Payment Processing Industry. I help payment facilitators and PSPs solve their various payment processing issues. On a regular basis, I work with a team of knowledgeable technical people in the space, and I am passionate about finding creative solutions to the challenges presented by the Payments Industry.

I would be happy to help with any questions you might have regarding credit card payment processing, merchant services, EMV certifications, the various ways of becoming a payment facilitator or a payment platform, as well as any other Payment Industry related issues you might be struggling with. Feel free to follow me on Quora, and don’t hesitate to send me links to the specific Quora questions you would like me to answer.

Offline Transaction Processing

Store-and-forward mechanism implemented for offline transaction processing is and important solution allowing a merchant to process transactions in the cases when this merchant experiences connectivity problems with the processor’s application.

Store-and-forward mechanism originates from the times when modems were introduced into credit card processing scheme and connectivity problems happened rather frequently.

The mechanism works as follows. If connectivity with the processor’s application is broken (usually, due to some errors), transactions are stored at the merchant’s end, while a “fake” transaction approval confirmation is generated in order to let the customer understand that the transaction is getting through, no matter what the problems are.

Although there is a risk that transactions, which are stored for further processing, will get declined after they are re-attempted (re-submitted), in most cases they do get approved.

The Store-and-forward

Store-and-forward solution can be implemented both at the level of an individual payment terminal, and at the level of a payment gateway. Offline processing is most commonly used by e-commerce industry representatives. However, retail businesses also utilize offline processing, although, in order to minimize the fraud risks, associated with card-present transactions, they use it on smaller transaction amounts.

More information on store-and-forward mechanism and offline processing can be found in the respective article “Offline processing” on Paylosophy.com blog.

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