Authorization payments for Gateways

Modified on Mon, 26 Feb 2024 at 03:19 PM

$0.01 authorizations occur as part of the verification process to confirm the validity of the card, verify the cardholder's address, prevent fraud, and test payment systems. These small charges are typically temporary and are refunded or reversed shortly after they serve their purpose.

Here's why:

1. Card Verification: It helps verify that the card is valid and active. When a transaction is processed, the gateway communicates with the card issuer to ensure that the card is legitimate and has sufficient funds available.

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