Authorization

Authorization is a way to reserve an amount on your customer's electronic payment account. For example, if your customer purchases goods in the amount of USD 100, you can send the authorization to Electronic Payment Provider for USD 100 and reserve that amount. You are not actually charging the account, you are just reserving a specific quantity. If your customer has a USD 500 available credit before your reservation, then she will have USD 400 available after your reservation.

An authorization amount is valid for a certain period of time. After this time expires, your reservation on your customer's account expires. In this example, your customer's available credit returns to USD 500.