What is a closed-loop system versus an open-loop system?

A closed-loop system operates on a secure, private network ‘closed’ off from the outside world or public Internet. Intellitix uses a server-connected, closed-loop Cashless Payment system hosted on a local network. This ensures fast transaction processing and maximum uptime without any payment interruptions across the event site.


In contrast, an open-loop system requires a network connection to receive authorization from the credit card company or issuing bank. In most cases, the system cannot operate offline, which may result in downtime especially in open-air environments, remote locations, or crowded signal areas and times when network connectivity is not reliable or consistent.

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