What does the acronym CAS stand for in payment terminology?

The acronym CAS stands for Card Authorization System in payment terminology. This system plays a crucial role in the payment processing landscape as it is responsible for obtaining approval from the card issuer for a transaction. When a cardholder attempts to make a purchase, the merchant's processing system sends a request to the card issuer to verify that the card is valid and that the cardholder has sufficient funds or credit available to complete the transaction.

The Card Authorization System ensures that transactions can be processed securely and efficiently, helping to prevent fraud and chargebacks. By authorizing transactions in real-time, it allows merchants to confirm the legitimacy of the purchase before completing it, thus enhancing customer experience and trust in the payment process.

Understanding the function of the Card Authorization System is vital for professionals in payments as it forms the backbone of transactional security and helps in maintaining the integrity of financial exchanges in an increasingly digital marketplace.