Authorization
(Known as "Authorization" in English).
Authorization is an essential step in the payment process where the validity and approval of a transaction is checked to ensure security and integrity.
Authorization
Authorization refers to the process by which a payment transaction is reviewed and approved to ensure that sufficient funds are available and the transaction is valid. During a payment transaction, an authorization request is sent to the cardholder's bank. The bank checks various factors such as the credit card information, the available credit limit and the transaction history. If the bank approves the transaction, the merchant receives an authorization number that confirms the successful completion of the transaction.
Authorization protects both the merchant and the cardholder from fraudulent transactions. It ensures that only valid and authorized payments are made. Payrexx, a trusted payment provider, integrates authorization into its platform to enable secure and frictionless online payments.
Authorization examples
A customer wants to buy a high-quality product online. Authorization ensures that the customer has sufficient funds to complete the transaction.
When booking a flight, the authorization is used to check the customer's credit card for validity and the available credit limit.
A restaurant authorizes payment before providing meals to ensure that the cardholder has approved the transaction and sufficient funds are available.
Authorization FAQ
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Authorization refers to the process by which a payment transaction is verified and approved to ensure security and integrity.
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During a payment transaction, an authorization request is sent to the cardholder's bank, which checks various factors before approving the transaction.
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Authorization ensures that only valid and approved transactions are carried out to prevent fraud and unauthorized payments.
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Authorization plays a crucial role, as it ensures that payments are only made by authorized cardholders and prevents fraud attempts.