What does the Authorization Response Code relate to?

The Authorization Response Code is specifically related to transactions that are authorized offline using chip technology. When a chip-enabled card transaction is processed offline, the terminal generates a unique response code that indicates whether the transaction was approved or declined. This code is crucial because it communicates the result of the authorization process to the merchant, allowing them to proceed accordingly with the transaction even if they do not have connectivity to the payment processor at that moment.

The focus on chip transactions highlights the importance of secure and efficient transaction processing, especially in scenarios where immediate connectivity may not be available. This aspect of payment processing is essential to understanding how authorization works in different environments and under varying conditions, making it a foundational element in the broader understanding of electronic transactions and payment security.