Authorization

Authorization is the process by which a card issuer approves or declines a payment card transaction. In a card-present environment, the authorization occurs automatically when a card's magnetic stripe is swiped through a card reader. In a card-not-present environment, the authorization occurs when the card account's information is submitted online or over the phone. In both instances, the card information is routed to the card issuer through the respective Credit Card Association's network and then the card issuer's response is routed back through the same channel.