Authorisation

In the context of payments, authorization refers to the process where a card issuer or a financial institution approves a transaction after verifying that the cardholder has sufficient funds or credit to complete the purchase. This step is crucial for ensuring that the customer has the necessary resources to fulfill the transaction, and it typically involves a real-time verification process to validate the legitimacy of the payment request. Upon successful authorization, the funds are reserved for the specific transaction, marking the initial step towards the completion of the payment process.