Bank card authorization is a confirmation that must be obtained from the issuing bank, most often through a credit card processor. Authorization means checking that you have the necessary funds to complete a purchase.

The definition of an authorization

Authorization is one of the main processes when making a deal. After entering the payment details, the issuer checks the user’s account and decides if there are enough funds to complete the purchase. In case of a positive answer, pre-authorization takes place and the amount to be debited is reserved on the client’s account equal to the cost of the goods or services. The acquirer receives an authorization code and sends information to the merchant to confirm or reject the transaction.

Are funds charged upon authorization?

No, during the authorization process the funds are not removed, they are only backed up (capture). Authorization is the confirmation of the availability of funds available and the retention of these funds In many cases with online acquirers, the capture step is usually done automatically after authorization.

What if authorization is denied?

There are certain reasons why authorization might be rejected. The payment system automatically notifies participants about the authorization status. Usually the message comes in the form of an error code:

authorization error codes

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