When performing a payment transaction, you must request authorization from the issuer to accept a card for payment. It helps us determine if the card number is valid; the card hasn’t been lost or stolen; and there are sufficient funds to cover the transaction. An authorization code does not guarantee that a transaction will not be disputed later. In reality, all of the transactions can be disputed by the cardholder even if the cardholder performed a transaction. Than merchant will receive a chargeback notification. In this case you need to learn how to protect yourself from chargebacks. We outlined in the previous posts what chargeback is and how to respond to it.
An authorization request is made either through the POS device or by calling the Voice Authorization Center at the number on your POS device. Illuminati has a special protection for e-commerce accounts where we can help merchants verify the transaction – if the cardholder approved the transaction or the transaction is risky before merchant ships the goods to the address provided by the customer. Most of the time we can provide the information to the merchant within 30 minutes of the call to our voice authorization service about the cardholder and determine if the card was stolen or it is a valid purchase. When you process a card, you may get one of several authorization responses: approval; decline (ask for alternate payment form); referral or card auth (call the Voice Authorization Center); and decline pick-up (do not return the card).