A system and method which overcome capacity and latency limitations of online charging systems. In an embodiment of the invention an online mediation system includes a SCIM, a Local-OCS and an SDR Processor. The SCIM includes smart offloading functionality which can determine, based on network events and account status, whether a session should be offloaded. Where a session should be offloaded, the SCIM initializes and mediates an offloaded charging session with the Local-OCS. In an embodiment, the SCIM includes smart offloading functionality which make a determination within an offloaded session based on additional network events, the used units and the account status whether a session should continue to be offloaded. Where a session should not continue to be offloaded, the SCIM terminates the offloaded charging session with the Local-OCS and initializes and mediate a charging session with an online OCS.