Why is it important to evaluate excessive authorizations in transaction logs?

Evaluating excessive authorizations in transaction logs is crucial primarily to help avoid brand fees associated with non-settled transactions. When a transaction is authorized but not settled, it can lead to financial costs for the merchant and the payment processor. Brands may impose fees on merchants for an excessive number of authorizations that do not convert into settled transactions. This can indicate issues within the transaction process, such as potential fraud or system errors. By monitoring and addressing these excessive authorizations, businesses can mitigate the risk of incurring these additional fees and ensure a smoother transaction flow.

Understanding this aspect allows organizations to maintain healthier financial practices and manage operational efficiency, which ultimately aids in sustaining their brand reputation and customer relationships.