What happens when a card transaction is authorized?

When a card transaction is authorized, it means that the payment card issuer has verified the customer's account and confirmed that there are sufficient funds or credit available for the transaction. At this point, an authorization hold is placed on the customer's account, which reserves the funds needed for the purchase.

This hold indicates that the transaction can proceed, and the merchant can then complete the sale, allowing the funds to be collected from the customer's account, usually through a subsequent settlement process. The transaction is, therefore, effectively guaranteed to go through, assuming no subsequent issues arise before settlement.

Therefore, the correct outcome of an authorization is that the transaction is considered complete in terms of approval, and the merchant can rely on receiving payment for the goods or services provided.