Authorisation
Authorisation is the real-time check where the card issuer confirms a card is valid and has sufficient funds, and reserves the amount. It approves the payment but does not move any money — that happens later at capture and settlement.
The request travels from the terminal or checkout to the acquirer, through the card scheme, to the issuing bank, and back, normally in under two seconds.
An approved authorisation places a hold on the cardholder’s available balance. If the payment is never captured, the hold expires and drops off, which is why customers sometimes see a pending amount vanish.
Some providers charge a separate per-authorisation fee on top of the transaction rate, including on declines.
Why it matters to you
If a rate card mentions an authorisation fee, that is a real cost on every attempt, including the ones that fail. Ask what it is before you sign.
Work out what you’re actually paying.
Whatever your statement calls it, the only figure that matters is total cost divided by total takings. Our calculator works that out from your own numbers.
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