The real-time check that a card is valid and has enough funds or credit, resulting in an approval or decline. Authorization holds the amount but doesn't move money — that happens at settlement.
Why it matters for your business
Terms like Authorization aren't just jargon — they sit behind what you actually pay to accept payments. Understanding them is the difference between reading your statement and being at the mercy of it. If you're not sure how this shows up in your own costs, the fastest way to find out is to have someone read your statement line by line.
See what you're really paying →Related — Processing & Technology