An authorization is the process of verification of the validity of a credit card and the balance allowable on the purchaser’s credit line to purchase goods or services from a merchant. You can obtain authorizations through a point of sale system.
Settlement is the process of managing electronic payment transactions so they can clear and be funded. To make this happen, the merchant, must present approved card transactions to the acquirer. The acquirer then submits those approved transactions to the payment networks for clearing through interchange. You may hear these transactions referred to as "deposit" transactions.
Payments 101 - part 1
Learn about the key events in bankcard processing history and industry participants and the unique roles each plays in a typical credit card transaction processing workflow.
Payments 101 - part 2
In this module we introduce the different types of payment solutions, concepts and terminology of the payment industry.