Who typically provides the authorization approval during a transaction?

Authorization approval during a transaction is primarily provided by the card issuer or an authorized agent. This process involves the card issuer validating the transaction details against the cardholder's account to ensure sufficient funds are available and to confirm that the transaction aligns with the established spending limits and security checks.

The card issuer is responsible for mitigating risks associated with fraudulent activities and maintaining the integrity of the payment network. During this step, the issuer may also engage in additional security measures, such as real-time fraud detection algorithms, to protect against unauthorized transactions.

The other roles in the transaction process, such as the customer and the merchant, play their parts but do not have the authority to approve or authorize the transaction. The customer initiates the transaction, while the merchant facilitates it; however, the ultimate decision on whether a transaction is approved lies with the card issuer or an authorized agent. The payment processor’s technical team is involved in the back-end processing of transactions but does not have the capability to authorize transactions themselves.