Authorization Code

AAA

DEFINITION of 'Authorization Code'

A generic term that refers to a code or password that identifies the user as authorized to purchase, sell or transfer items, or to enter information into a security-protected space. For example, an authorization code would be required for a vendor to process a credit card transaction on behalf of a customer paying for goods.

INVESTOPEDIA EXPLAINS 'Authorization Code'

Authorization codes are used for any transaction or entry that has restrictions on which users are entitled to access. For example, only certain individuals will have the authority to approve major expenses, and will probably have an authorization code in the company's records or on a case-by-case basis to complete any approval.

An authorization code is commonly attached to credit card transactions, not only to signal a merchant that the transaction is approved, but also to help identify the transaction in follow-up examinations, such as disputed transactions.

RELATED TERMS
  1. Banknet

    A global network operated by MasterCard that facilitates the ...
  2. Trading Authorization

    The level of power entrusted to a broker or agent granting specific ...
  3. Managed Account

    An investment account that is owned by an individual investor ...
  4. Full Trading Authorization

    A level of trading authorization that grants an agent or broker the ...
  5. Limited Trading Authorization

    A level of trading authorization that gives an agent or broker the ...
  6. Chargeback

    The charge a credit card merchant pays to a customer after the ...
RELATED FAQS
  1. How has investing in the Internet sector evolved over time?

    Investing in the Internet sector has become more conservative over time. It reflects a more measured approach that shies ... Read Full Answer >>
  2. How have technical skills shifted over the past century in the workforce?

    Several changes have transformed the skills required of the modern workforce. The influence of technological change has undoubtedly ... Read Full Answer >>
Related Articles
  1. Credit & Loans

    How To Dispute A Credit Card Charge

    Follow these steps if you've been ripped off or spot an error on your bill.
  2. Economics

    Inside National Payment Systems

    Investopedia explains: The global interconnection of U.S. payment systems makes commerical and financial transfers possible.
  3. Credit & Loans

    How Credit Cards Built A Plastic Empire

    A decade before Mastercard or Visa existed, the first credit card company was introduced.
  4. Stock Analysis

    Smartphone "Flagship Killers" Coming after Apple and Samsung

    Learn why flagship killers such as OnePlus and Xiaomi have the potential to become the first legitimate competition faced by Apple and Samsung.
  5. Professionals

    Are These the 10 Best Stocks in the World?

    Most of the top 10 stocks in the world have performed exceptionally well over the past several years. Here's a look at their future prospects.
  6. Stock Analysis

    Where Does Yahoo (YHOO) Go From Here?

    Yahoo operates in a competitive environment, but if it makes the right deals there's no reason why it can't thrive.
  7. Personal Finance

    Can Mobileye Revolutionize The Car Industry?

    Cars are evolving into vehicles connected to the ecosystem around us. With its ability to sense and detect objects around a car, Mobileye's technology is making that connected ecosystem possible.
  8. Professionals

    Tips on How Financial Advisors Can Go Paperless

    Going paperless may seem daunting for some advisors, but new software and hardware technologies are making it easier every day.
  9. Stock Analysis

    Is Apple's (AAPL) Selloff Justifiable or Panic?

    Apple has minted millionaires over the past decade, but there is one current risk that might soon bring this to an end at least temporarily.
  10. Professionals

    Why Robo-Advisors Need to Grow Up

    The main players in the robo-advisor space need to act more human. Here's why.

You May Also Like

Hot Definitions
  1. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  2. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  3. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  4. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  5. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  6. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!