Payments

What is Payment authorization?

Payment authorization is a decision that a payment request is permitted under a particular credential, policy, and context. It may approve an attempt or reserve capacity, but it is distinct from capture, transfer confirmation, clearing, and final settlement.

A system should state which actor authorized which exact action, amount, recipient, asset, and expiry. Re-check policies at the point of execution because an earlier approval can become stale or can be replayed if it is not bound to a unique request.

Authentication establishes a session identity; it does not automatically authorize every payment. Record the policy decision separately from the transfer result so each can be reviewed.

Definitions are educational and general. Nothing here is financial, legal or tax advice, and regulatory descriptions summarise frameworks that change — check the current rules for your jurisdiction before relying on them.