Which entity will ultimately approve a card purchase?

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Prepare for the PCI Approved Scanning Vendor (ASV) Test. Study with flashcards, multiple choice questions, hints, and explanations. Get exam ready!

Multiple Choice

Which entity will ultimately approve a card purchase?

Explanation:
The card-issuing bank is the one that ultimately approves a purchase. When a sale is initiated, the transaction data travels from the merchant through the gateway to the issuer via the card networks. The issuer reviews factors like card validity, available credit or funds, and potential fraud signals. If everything checks out, the issuer issues an authorization and reserves the funds, returning an authorization code that enables the merchant to complete the sale. The acquirer and gateway facilitate the flow of information, but they do not decide whether to approve the transaction.

The card-issuing bank is the one that ultimately approves a purchase. When a sale is initiated, the transaction data travels from the merchant through the gateway to the issuer via the card networks. The issuer reviews factors like card validity, available credit or funds, and potential fraud signals. If everything checks out, the issuer issues an authorization and reserves the funds, returning an authorization code that enables the merchant to complete the sale. The acquirer and gateway facilitate the flow of information, but they do not decide whether to approve the transaction.

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