Credit card approval is a process through which the issuer bank of the card validate whether the

credit card holder has sufficient balance to pay the transaction. When the card holder makes any
transaction , the seller normally swipe the card in its swipe machine , on the background the
information such as card holder name , PIN , Card validity etc all been captured by the acquirer (
also known as a credit card bank, acquiring bank or merchant bank, is a
bank or financial institution, licensed as a member of a card association
(like Visa or MasterCard), that creates and maintains the merchant’s bank
account.) and transfer the same to the card issuer bank. On that point the
card issuer bank validate all the information along with a checking whether
the card holder is having enough balance to pay the transaction amount .

If there are enough fund is there on the account , then the transaction gets
authorisation from the issuer bank and the limit of the credit get reduced
from the credit line . Hence the acquirer gets a code of approval from the
issuer bank . In case there are any mismatch either the information
provided or less fund then the error code gets generated and transaction
gets declined . he most important point is that a failed authorization means a
sale can not be completed. The seller should not ship the product or complete
the transaction without an authorization code.

If the error code indicates a technical problem then it is usually the seller's job
to fix the issue. In rare cases, the acquirer will be having technical issues and
the seller will have to wait until these are fixed. In most cases, there is a
problem with the information being supplied to the processor. This can be an
issue with the configuration or the online submission, such as an incorrectly
typed or missing value. In this case, the seller should fix the problem as soon
as possible. Error codes indicating financial reasons usually mean there is a
problem with the buyer's account.

What is a credit card authorization form? A credit card authorization form is a

document, signed by a cardholder, that grants a merchant permission to charge theircredit
card for a period of time as written in that document.
The authorization process doesn't transfer funds from the cardholder to the merchant. It's
simply the bank's way of telling the merchant that the funds for a purchase exist. When a
customer pays with a credit or debit card, the merchant contacts the cardholder's issuing
bank and requests an authorization code.