Authorization Code
Barron's Banking Dictionary:
Top
Authorization Code
In bank cards, a message from a merchant processing bank, the acquirer bank, to a card accepting merchant approving transactions against the card presented by the cardholder. See also Negative Authorization; Positive Authorization; Zero-Floor Limit.
Related Videos:
Top
Authorization Code
Investopedia Financial Dictionary:
Top
Authorization Code
A generic term that refers to a code or password that identifies the user as authorized to purchase, sell or transfer items, or to enter information into a security-protected space. For example, an authorization code would be required for a vendor to process a credit card transaction on behalf of a customer paying for goods.
Investopedia Says:
Authorization codes are used for any transaction or entry that has restrictions on which users are entitled to access. For example, only certain individuals will have the authority to approve major expenses, and will probably have an authorization code in the company's records or on a case-by-case basis to complete any approval.
An authorization code is commonly attached to credit card transactions, not only to signal a merchant that the transaction is approved, but also to help identify the transaction in follow-up examinations, such as disputed transactions.
Related Links:
The global interconnection of U.S. payment systems makes commerical and financial transfers possible. Inside National Payment Systems
A decade before Mastercard or Visa existed, the first credit card company was introduced. How Credit Cards Built A Plastic Empire
Follow these steps if you've been ripped off or spot an error on your bill. How To Dispute A Credit Card Charge
Post a question - any question - to the WikiAnswers community:
Copyrights:
Barron's Banking Dictionary
Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.
Read more
