The card authorization process

Card authorization allows you to accept a credit/debit card payment from a customer and, within a matter of seconds, have the card transaction approved over the Internet by your bank. You also have the option of having transactions deferred for authorization at a later time.

Diagram and steps from PayPal

Credit card authorization includes these steps:

1. A customer purchases a product or service from your store.
2. The payment gateway encrypts data and securely sends it through the payment processing network.
3. The transaction is reviewed for authorization or decline, and the results are sent back through the Payflow payment gateway.
4. Your customer receives a confirmation receipt and you fulfill the order.
5. Once the transaction is processed, funds are transferred from the customer’s bank account to your merchant bank account.