What does it mean when a transaction is marked as "processed" during authorization?

When a transaction is marked as "processed" during authorization, it indicates that the transaction has undergone the necessary checks to determine whether it should be approved or denied. This stage is critical because it reflects the outcome of the authorization process where the payment processor communicates with the issuing bank to confirm if the transaction can proceed based on the cardholder's available credit or funds.

"Processed" does not imply that the cardholder has been informed of the approval, as this communication typically occurs afterward. It also does not mean that funds have been transferred, as that transaction phase occurs post-authorization, during the settlement process. Additionally, the term "processed" signifies that the transaction was evaluated, and does not suggest that the merchant has cancelled it, which is an entirely separate action.

Understanding this context helps emphasize the role of the authorization process in ensuring that transactions are secure and valid before moving forward.