Positive Authorization

DEFINITION of 'Positive Authorization'

A system used to authorize retail purchases. Positive authorization compares all non-cash transactions against bank customer files for approval. Transactions that come back as delinquent are rejected.

BREAKING DOWN 'Positive Authorization'

Positive authorization is a stricter form of credit approval than negative authorization. Positive authorization can reject a customer who has merely temporarily exceeded his limit. Negative authorization rejects only those who are genuinely delinquent cardholders.

RELATED TERMS
  1. Authorization Only

    A type of sale transaction that creates a pending transaction ...
  2. Negative Authorization

    A credit card approval system that compares a credit card number ...
  3. Authorization Code

    A generic term that refers to a code or password that identifies ...
  4. Authorized Share Capital

    The number of stock units that a publicly traded company can ...
  5. Authorization Date

    The month, day and year when a credit card transaction is approved ...
  6. Credit Card Authorized User

    Definition of an authorized user of a credit card.
Related Articles
  1. Credit & Loans

    How Credit Card Delinquency Works

    When you pay less than the minimum monthly payment on your credit cards, you become delinquent.
  2. Taxes

    What's IRS Form 2848 Used For?

    It's a power of attorney tax form and here's what it can, and cannot, do.
  3. Professionals

    Equity Terminology

    Series 7 - Section 3: Equity Terminology
  4. Professionals

    Corporate Time Line

    The following is a representation of the steps that corporations must take in order to sell their common stock to the public, as well as what may happen to that stock once it has been sold to ...
  5. Bonds & Fixed Income

    What Is A Municipal Bond?

    A municipal bond is a debt instrument used by a city, state, county or other local government authority to raise money for a project. Municipal bonds, often called munis, are considered a debt ...
  6. Professionals

    Types of Account Agents

    FINRA/NASAA Series 66 Section 2 - Types of Account Agents. In this section account agent types: fiduciary, power of attorney and discretionary accounts.
  7. Professionals

    Other Types of Accounts

    Other Types of Customer Accounts
  8. Investing Basics

    What are Issued Shares?

    Issued shares are the amount of authorized stocks a company’s shareholders buy and own. The annual report shows the number of outstanding shares.
  9. Professionals

    Other Exempt Transactions

    FINRA/NASAA Series 63 - Other Exempt Transactions. In this section federal covered securities transactions, transactions between issuer and underwriter, existing owners and of employee stock ...
  10. Professionals

    Introduction

    FINRA/NASAA Series 65 - Remedies and Administrative Provisions. This section introduces the chapter on remedies and administartive provisions.
RELATED FAQS
  1. What is authorized stock?

    Authorized stock represents the maximum number of common shares that can be issued legally by the company as stated in the ... Read Answer >>
  2. What is the difference between authorized shares and outstanding shares?

    Calculating financial ratios can help investors understand a company's financial position, but only when a knowledge of various ... Read Answer >>
  3. What are the long-term effects of delinquent accounts?

    Find out more about loan delinquency, loan defaults and the long-term consequences of borrowers who are delinquent on their ... Read Answer >>
  4. What is the difference between student loan default and delinquency?

    Learn the differences between simply becoming delinquent on your student loans vs. actually defaulting on your student loan ... Read Answer >>
  5. What are the differences between delinquency and default?

    Find out more about loan delinquency, loan default, and the difference between a loan borrower defaulting and being delinquent ... Read Answer >>
  6. What is the difference between paid-up capital and share capital?

    Learn to differentiate between authorized share capital and paid-up capital. See why paid-up capital can never exceed authorized ... Read Answer >>
Hot Definitions
  1. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  6. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
Trading Center