Which term is used to describe a service allowing the verification of a customer's credit card validity?

The term "Credit Authorization" refers specifically to the process by which a merchant or service provider verifies whether a customer's credit card is valid and whether sufficient funds are available to complete a transaction. This process is crucial in mitigating fraud and ensuring that the payment method presented by the customer is legitimate and has the necessary credit to cover the intended purchase.

During credit authorization, various checks are performed, such as confirming the card number, checking for an expiration date, and verifying the security code. The issuing bank usually facilitates this process, responding with approval or decline based on the account status and transaction details. This step is vital in the payment processing lifecycle, as it helps to secure both the merchant and the consumer against potential losses.

In contrast, the other terms listed do not accurately describe the same process. "Credit Balance" refers to the amount of credit available to a customer on their credit card, "Credit Bureau" pertains to an organization that collects and analyzes credit information about individuals, and "Credit Cap" implies a limit on the amount of credit extended to a consumer, rather than focusing on the validity of a card at the point of sale. Thus, "Credit Authorization" is the appropriate term for the service involved in verifying a customer's credit card validity.