Authorization

(Known in English as "Authorization").

Authorization is an essential step in the payment process that verifies the validity and approval of a transaction 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, a request for authorization is sent to the cardholder's bank. The bank reviews various factors such as the credit card information, available credit line, and transaction history. If the bank approves the transaction, the merchant receives an authorization number confirming that the transaction has been successfully completed.

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-value product online. Authorization ensures that the customer has sufficient funds to complete the transaction.

When booking a flight, authorization is used to check the customer's credit card for validity and available credit limit.

A restaurant authorizes payment before providing meals to ensure that the cardholder has approved the transaction and that sufficient funds are available.

Authorization FAQ

  • Authorization refers to the process by which a payment transaction is reviewed and approved to ensure security and integrity.

  • During a payment transaction, a request for authorization is sent to the cardholder's bank, which checks various factors before approving the transaction.

  • Authorization ensures that only valid and approved transactions are performed to prevent fraud and unauthorized payments.

  • Authorization plays a crucial role by ensuring that payments are only made by authorized cardholders and preventing fraud attempts.