Authorization Code

An “authorization code” is a numeric or alphanumeric code sent by a prepaid card issuer to a merchant terminal verifying that a sale has been authorized or approved. The authorization code can be used to look up a transaction and is also used to clear and settle transactions (to make sure the merchant gets paid by the prepaid card issuer and that sufficient funds are debited from the buyer’s prepaid card account).

Filed under: Glossary
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