Transaction Authorization Code

What is a transaction authorization code?

A transaction authorization code is a unique identifier a credit card issuer or payment processor generates to approve a specific transaction. This code confirms that the transaction has been successfully authorized, and the funds are available. It serves as proof that the customer’s bank has validated the payment request. Authorization codes are typically 6 to 7 alphanumeric characters and are used for recordkeeping and troubleshooting payment issues.

Key Points

A transaction authorization code is a unique alphanumeric identifier confirming a payment has been approved, and funds are available.
The issuing bank automatically generates it during payment processing and can be found in receipts, POS systems, or merchant records.

How to get a transaction authorization code

When a payment is processed—whether online, in person, or over the phone—the authorization code is automatically created by the cardholder’s issuing bank after verifying the transaction details. Most businesses don’t need additional steps to obtain it; the code is typically returned via the payment terminal, POS system, or payment gateway response. In some cases, it may also appear on printed receipts or be accessible in your merchant portal or transaction logs.

Transaction authorization example

Suppose a customer purchases $250 worth of equipment from a store using a credit card. The card is swiped or entered online, and the issuing bank confirms the transaction is valid. The system then returns an authorization code like “A1B2C3” to the merchant, which is saved with the transaction details. If there’s ever a dispute or need to track the transaction later, that code acts as a reference.