Authorization
Authorization is essentially a request sent to your chosen Payment Service Provider (PSP) to verify the validity of the payment details provided by the customer. The PSP acts as a middleman, reaching out to the issuing bank that issued the customer's credit card to confirm if the funds are available and the card is active.
Once the payment method is validated, UpStart Commerce sends an authorization request to your chosen Payment Service Provider (PSP). Think of the PSP as your partner bank that handles the actual communication with the issuing bank (the bank that issued your customer's credit card).
The PSP verifies the payment details provided by your customer. This includes checking the card number, expiration date, and CVV code. Additionally, the PSP confirms with the issuing bank whether sufficient funds are available in the customer's account.
If everything checks out, the PSP authorizes the transaction. This means the requested amount is "held" on the customer's account, guaranteeing the funds are available for capture.
The authorization ensures you're not processing a payment that could potentially fail due to insufficient funds or invalid information. The consumers receive immediate feedback on whether their payment method is authorized, preventing them from going through a failed checkout process.
- Request to Payment Service Provider (PSP): When a customer completes their order on your online store, UpStart Commerce sends a request to your chosen PSP. This request includes details like the payment amount, customer billing information, and credit card details (if using a credit card).
- PSP Verification: The PSP leverages its secure systems to verify the following:
- Card Validity: Ensures the provided credit card number is valid and not expired or reported stolen.
- Available Funds: Checks if sufficient funds are available in the customer's account to cover the purchase amount.
- Issuer Bank Communication: The PSP might communicate with the issuing bank that issued the credit card for additional verification.
- Authorization Response: Based on the verification results, the PSP sends a response back to UpStart Commerce. This response indicates either:
- Approval: If everything checks out, the PSP authorizes the transaction. This means the funds are held on the customer's account, but not captured yet. You can proceed with fulfilling the order.
- Decline: If there's an issue (e.g., insufficient funds, invalid card), the PSP declines the authorization. The customer will be notified about the failed payment, and you'll receive a decline notification from UpStart Commerce.