What is an authorization terminal used for?

An authorization terminal plays a crucial role in the point-of-sale (POS) process by facilitating electronic authorization of payment transactions. When a customer swipes their card, the authorization terminal connects to the payment processor to verify that the card is valid and that sufficient funds are available for the transaction. This process ensures that the transaction is secure and that the funds are reserved for the merchant, effectively reducing the risk of fraud and ensuring a smooth checkout experience for customers.

While other options may refer to functionalities relevant to customer interactions or data management, they do not encapsulate the primary purpose of an authorization terminal, which is to perform the critical task of processing payment authorizations in real time at the point of sale.