Meaning
Temporary data buffers hold transaction details when a payment terminal is unable to establish a real-time connection with the authorization host. Using a store and forward queue allows a merchant to continue accepting payments during network outages or in locations with intermittent connectivity. Once the connection is restored, the terminal automatically transmits the stored records to the processor for final approval and settlement.
This mechanism ensures business continuity and prevents the loss of sales due to technical failures.
Operational Continuity
Merchants in the transportation and hospitality sectors rely on this feature to maintain a high speed of service. When the network is unavailable, the terminal places the transaction into the store and forward queue and provides a local approval to the customer. This process is transparent to the user and avoids the frustration of a declined payment.
Risk Management
Accepting payments offline introduces a level of financial risk because the validity of the card and the availability of funds are not confirmed in real time. To mitigate this, the store and forward queue is often governed by strict limits on the total value and the number of stored transactions. If the queue reaches its capacity or a single transaction exceeds a certain amount, the terminal will stop accepting offline payments.
Merchants are typically liable for any transactions in the queue that are later declined by the issuer.
Data Synchronization
Integrity of the financial records depends on the successful delivery of all queued items. Detailed reports show the status of each uploaded transaction, allowing the merchant to reconcile their daily sales with the received funds.
