Definition
Authorization is the process where the issuer bank verifies funds or credit availability and approves or declines a transaction.
How this works
The request travels from the merchant to the issuer bank through the acquirer and network.
Benefits
• Prevents insufficient fund transactions
• Reduces fraud
• Ensures payment validity
FAQs
Does Authorization mean money is deducted?
No. It only blocks the amount.
Can Authorization fail?
Yes. Due to insufficient funds or risk checks.
Is Authorization mandatory?
Yes. For card payments.