What is Authorization (Card Auth)?

Authorization, also known as card authorization or card auth, is a process that checks if the customer's credit, debit, or digital payment type has enough funds available for the purchase and is approved for a transaction before the payment is completed.

The authorization helps restaurants confirm that the payment method can be used for the purchase and minimize issues with fraudulent payments.

Card authorization happens when a customer pays for-

• Dine-in
• Takeout orders
• Delivery
• Bar tab
• Online food orders

How do card authorization functions work in a restaurant?

Card authorization is an electronic process conducted by a restaurant's POS system and payment processor.

Here is the process-

• The customer provides their payment card or digital method.
• The restaurant POS sends a payment request to the payment processor.
• The processor communicates with the customer's bank or card issuer.
• The bank verifies the availability of funds, the card's valid date, cardholder information, and fraud triggers.
• The bank responds to the processor whether to accept or reject the request.
• If accepted, the authorized sum is deferred in the customer's account until settlement.
• This authentication should take only a few seconds.