Description: Transaction authorization is the process of approving a transaction before it is processed. This mechanism is fundamental in the realm of payment platforms, as it ensures that funds are available and that the transaction is legitimate. During this process, the validity of the credit or debit card, as well as the identity of the cardholder, is verified. Authorization is carried out through a series of steps that include communication between the merchant, the acquiring bank, and the issuing bank. This process not only helps prevent fraud but also ensures that transactions are conducted efficiently and securely. Authorization can be temporary, meaning that funds are reserved for a specific period, or final, where funds are transferred immediately. Today, transaction authorization is an essential component of digital payment systems, where speed and security are paramount for customer satisfaction and trust in the payment system.
