Payment Authorization

What is Payment Authorization?

Payment Authorization is a kind of an approach which guarantees evidence that the certain account is valid and adequately provisioned inquiry can be approved. If the client conducts a payment by his/her card, the data must be transmitted to the cardholder’s financial establishment for handling. The PA is a type of operation which ensures the security of clients’ payments.

It is a kind of pending charge or hold of the payment in order to guarantee that the client’s account has a sufficient sum of funds which can cover the price of the product/service. The PA commonly occurs in the pending transactions of the cardholder’s account.

All payments with credit cards have the authorization period at the time of which the charge can be made. The payment authorization first of all examines the validity of the card and whether the client’s card has an acceptable quantity of money to conduct a transaction. This procedure will take some time to check all the data needed for the payment.

When the inquiry is declined, the PA  will be called off. If such a situation occurs, the financial company can provide compensation on the cardholder’s account. Such operation commonly needs up to 7 days. The term is frequently set by the financial organization and can vary in different banks.

Card authorization