Card Processing – Authorization

By | February 28, 2016

At the time of purchase, the merchant requests and receives authorization to allow the purchase to be conducted, and an authorization code is provided.

The process includes:

  1. The cardholder swipes or dips card at the merchant location.
  2. The acquirer (merchant’s bank) asks the payment brand network to determine the issuer (carholder’s bank).
  3. The payment brand network determines the issuer and requests approval for purchase.
  4. The issuer approves the purchase.
  5. The payment brand network sends approval to acquirer.
  6. The acquirer sends approval to the merchant.
  7. The cardholder completes the purchase and receives a receipt.

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