Authorize Only

“Authorize Only” refers to a payment processing method where a merchant obtains approval from a customer’s credit card issuer to ensure that sufficient funds are available for a transaction. This authorization holds the funds for a certain period, typically a few days, without actually completing the transaction. It is commonly used in industries where there is a need to confirm the availability of funds before delivering goods or services, such as hotels, car rentals, or online retailers. The purpose of “Authorize Only” is to secure the payment and prevent fraud, while giving the merchant time to fulfill the order or complete the transaction.