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Credit Card Authorization Key

Reviewed by Apoorva | Updated on Sep 30, 2020

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Introduction

A credit card authorisation key is a numeric series that is to be entered during a credit card transaction to confirm that the cardholder has enough funds to make a purchase. It is also known as credit card authorisation code.

What is Credit Card Authorisation Key?

When a credit card is swiped, the details of the credit card are encrypted at the point-of-sale (POS) terminal. It is sent to the payment gateway provider in order to route the request to the credit card issuer.

When the card-issuing company receives the encrypted request, it verifies if the account has sufficient funds. If sufficient funds are available, the credit card company will send a credit card authorisation key to the merchant at operating POS terminal.

Why Credit Card Authorization Key is Important?

The authorisation keys are normally six-digit long, typically being a combination of credit card and transaction information, i.e. transaction amount and time stamp. It acts as a reference to a particular entry if the transaction must be voided or reversed.

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