What is an authorisation?
What is an authorization?
An authorization is the process of checking whether a payment can be completed. This includes verifying that the transaction is valid and that sufficient funds are available.
How does an authorization work?
The process generally takes place in two steps:
- Transaction verification and approval
The relevant bank or payment provider reviews the payment request. This may include checking whether sufficient funds are available and whether there are any signs of an unauthorized or suspicious transaction. - Payment processing
If the transaction is approved, the corresponding amount is authorized and the payment can be processed.
Why is an authorization necessary?
Authorization helps protect both users and merchants from unauthorized transactions. It also ensures that the necessary funds are available to complete the payment.
What happens if the payment is not completed?
If an authorized transaction cannot be successfully completed, the amount may temporarily appear as pending.
The pending amount will be automatically released and will become available again within 30 days at the latest.
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