What can an Authorization Response indicate?

The Authorization Response is a critical component in electronic payment transactions, as it provides essential feedback regarding the status of a transaction. The correct understanding is that an Authorization Response can indicate approval, denial, or referral to the issuing bank.

When processing a transaction, the response may communicate whether the transaction was approved, which means the cardholder has sufficient funds and the transaction meets all necessary criteria. In the case of denial, it indicates that the transaction cannot be completed, often due to insufficient funds or a blocked card.

Additionally, the referral response may occur when the issuer requires further verification before completing the transaction. This referral can happen when a transaction amount exceeds typical spending patterns or due to other security protocols the issuing bank has in place.

By understanding that an Authorization Response encompasses all these outcomes—approval, denial, and referral—individuals can appreciate the complexity of electronic transactions and the importance of each response in facilitating payment processing.