What is a Credit Card Authorization?

The request for authorization is first sent throughout the product owner’s buying bank to determine the card holder’s bank. When notified, the cardboard holder’s bank then determines whether the transaction with the merchant will either be approved or declined based on the cardboard holder’s line of credit. After the acquiring bank clarifies even if the cardholder holds adequate funds or credit for the transaction, this guidance of even if the transaction was declined or accredited travels back through the buying bank to the service provider. If the transaction is approved, then the quantity of the transaction is deducted from the card holder’s account and the cardholder is given receipt.