Authorization
Authorization is the process by which the issuer approves or declines a card payment — based on account balance, credit limit and security rules.
Authorization
Authorization is the first step in the card payment process. When a cardholder initiates a payment, the payment gateway sends an authorization request to the issuer via the acquirer and the card network.
The issuer checks whether the card is valid, whether there is sufficient credit or funds available, and whether security rules (e.g. 3D Secure, country blocks) are met. Within a few seconds, the Comerciante receives a response: approved or declined.
Important: Authorization is not yet a payment. The amount is merely reserved on the cardholder's account. The actual charge only occurs during the so-called capture (settlement), which can take place separately or simultaneously with the authorization. This distinction is particularly relevant for hotels, car rentals, and advance payments, where the final amount is not yet determined at the time of authorization.
Authorization examples
A customer pays online with Mastercard. The issuer authorizes the payment in less than 2 seconds.
A hotel authorizes EUR 500 on the guest's credit card at check-in. The final amount is only collected at check-out (capture).
An authorization is declined because the cardholder's credit limit has been exceeded.
Authorization FAQ
What does authorization mean in a card payment?
Authorization is the approval of a card payment by the issuer. The amount is reserved, but not yet debited. The actual charge only occurs upon capture.
How long does an authorization take?
An authorisation typically takes 1–3 seconds. With additional 3D Secure authentication, the overall process may take slightly longer, as the cardholder has to confirm the payment.
What is the difference between authorization and capture?
Authorization reserves the amount on the card account. Capture actually debits the account. Both can occur simultaneously or at different times.
Why is an authorization declined?
Common reasons: insufficient funds or credit limit, expired card, security block by the issuer (e.g. regional restriction), failed 3D Secure authentication, or suspected fraud.
