Which process involves checking card details and confirming funds for payment authorization?

The process that involves checking card details and confirming funds for payment authorization is known as transaction authorization. During this phase, when a consumer initiates a payment using a credit or debit card, the transaction goes through a verification process where the card issuer checks whether the card is valid, the cardholder's details match, and there are sufficient funds or credit available to cover the transaction amount. This step is crucial as it ensures that the payment can be processed without issues, preventing fraud and ensuring that both the merchant and the customer are protected.

Transaction authorization occurs before any funds are transferred and is a vital part of the payment process. It sets the stage for subsequent actions, such as transaction settlement and clearing, which occur later in the payment lifecycle. Understanding this step's function helps clarify the broader framework of payment processing and the critical role that initial authorization plays in securing transactions.