Transaction authorization

Transaction authorization is the process of verifying that a financial transaction—like a purchase or withdrawal—is legitimate and approved. When you use your credit or debit card, the bank checks if you have enough funds or credit, and confirms your identity through passwords or security codes. This ensures the transaction is authorized by the account holder, protecting against fraud. Essentially, it’s a safe gatekeeper that confirms your transaction is valid before it’s completed, helping maintain the security and accuracy of your financial dealings.