Authorization Date

Reviewed by Apoorva | Updated on Aug 27, 2020

Introduction

Authorisation date is a term that refers to the month, day, and year in which a transaction made using a credit card is approved by the credit card issuer. The authorisation date need not always be the same as the transaction date.

How Does Authorisation Date Work?

If the merchant processes the credit card transaction as soon as the sale is made, the authorisation date remains the same as the transaction date. Instead, if the merchant uses batch processing, the authorisation date might be a day or two later.

Why Authorization Date is Important?

Authorisation acts as the first step in credit card transaction processing. When an individual swipes the credit card at a merchant's console, the transaction information will be submitted to an acquirer. An acquirer is a financial institution that processes credit card transactions. The acquirer determines if the card has enough credit available, if the card is active, and if it is reported stolen or not before authorising.