Authorization
Authorization is the process whereby the issuer approves or declines a card payment — based on account balance, credit limit and security rules.
Authorization
Authorization is the first step in the card payment process. When a cardholder initiates a payment, the payment gateway sends an authorization request through the acquirer and the card network to the issuer.
The issuer checks whether the card is valid, whether there are sufficient funds or credit limit available, and whether security rules (e.g., 3-D Secure, country blocks) are complied with. Within a few seconds, the Comerciante receives a response: Approved or declined.
Important: Authorization is not yet a payment. The amount is merely reserved on the cardholder's account. The actual charge only occurs during the so-called capture (settlement), which can take place separately from or simultaneously with the authorization. This distinction is particularly relevant for hotels, car rentals, and advance payments, where the final amount is not yet determined at the time of authorization.
Authorization Examples
A customer pays online with Mastercard. The issuer authorizes the payment in under 2 seconds.
A hotel authorizes EUR 500 on the guest's credit card at check-in. The final amount is only debited at check-out (capture).
An authorization is declined because the cardholder's credit limit is exceeded.
Authorization FAQ
What does authorization mean in a card payment?
Authorization is the approval of a card payment by the issuer. The amount is reserved but not yet debited. The actual charge only occurs upon capture.
How long does an authorization take?
An authorization usually takes 1–3 seconds. With additional 3D Secure authentication, the overall process may take slightly longer, as the cardholder must confirm the payment.
What is the difference between authorization and capture?
Authorization reserves the amount on the card account. Capture actually debits the account. Both can occur at the same time or separately.
Why is an authorization declined?
Common reasons: insufficient funds or credit limit, expired card, security block by the issuer (e.g., country block), failed 3D Secure authentication, or suspected fraud.
