What happens during the authorization stage of a bank card transaction?

During the authorization stage of a bank card transaction, the primary focus is on ensuring that the cardholder has sufficient funds or credit to complete the purchase. This process involves the card issuer, which verifies the cardholder's account status. The card issuer checks various factors, including whether the card is valid, whether the account is active, and if there are enough funds or credit available to cover the transaction amount.

This verification is essential to prevent fraudulent transactions and to protect both the merchant and the consumer. Once the issuer approves the transaction, the merchant receives an authorization code that allows them to proceed with the sale. It's important for the processing of the transaction that this step is completed successfully, as it sets the foundation for a secure and legitimate purchase.