What is a Credit Card Authorization?
Credit card authorisations are requests to check if a credit card is approved to complete a transaction, such as purchasing services or goods online.
The authorization process for credit cards is required to verify that there are sufficient funds on the holder's credit card and that the card is approved for the purchase. An authorization request is generated every time the customer wants to buy a product or service using a bank card.
The merchant's acquiring bank sends an authorization request to identify the cardholder's bank. Having received a notification, the latter determines whether it can approve the transaction or reject it due to a lack of sufficient funds in the account or for another reason. Information about whether the transaction is approved or denied is transmitted back through the acquiring bank to the merchant. If the transaction is approved, the required amount is debited from the buyer's account, and they receive a payment receipt.