A card reader does not need an internet connection to capture a customer’s credit card payment information. But an internet connection is required to then pass that payment information on to the credit card networks for processing.
Your business’s point-of-sale (POS) system is multifaceted. When you accept a card payment—whether it’s a chip, swipe or contactless transaction—your card reader does the job of capturing that payment data. In the case of a mobile POS, that data can then be transferred via internet or Bluetooth to a POS app. The next step of getting that data from the app to the payment processor does require an internet connection.
Usually at the end of each business day, a merchant sends a batch of authorized credit card transactions to their payment processor. The processor then collects the money from the credit card issuer. And finally, the funds are deposited into the business’s merchant account.