If you swipe a card and their backend errors out or is unreachable, it does prompt you to switch to offline mode (as long as you're already logged in and have taken online transactions recently).
If a customer knows the payment processor is offline, they can use an invalid card and it will appear to go through. Merchant will be stuck with the liability after the transaction is later sent and declined.
If a customer knows the payment processor is offline, they can use an invalid card and it will appear to go through. Merchant will be stuck with the liability after the transaction is later sent and declined.