When payment is made with credit cards, which are among the most popular products of banks in Turkey, a transaction process is initiated between the consumer, the bank and the seller. One of the most frequently encountered concepts in this process is the provisioning process. So what is authorization on credit cards? What does provisioning do? What are the advantages of the provisioning process for the parties?
We can define the word provision, which came from French to banking literature, as ‘provision’ in Turkish. Provision is the approval stage applied by banks for credit card expenditures. During the provisioning process, banks check user limits and transaction reliability on behalf of the seller and buyer. If there is no problem, the transaction is approved. After the provision is received, the expenditure or collection is kept in electronic systems as a pending provision transaction. You can see account transactions in the pending authorization process under the ‘pending transactions’ menu in many banks’ mobile applications. You may encounter pending transactions, that is, provision, not only in mobile applications, but also when account movements are queried through call centers.
How long is the provision period?
When you make a transaction by credit card, the expenses remain in the pending authorization until the bank accounting transactions are completed. Bank accounting transactions are usually completed at midnight. However, with credit cards you can use a different bank. POSIn rare cases, the provisioning period for expenditures made from ‘s may take more than 1 day. In this process, the portion of the credit card balance equal to the transaction amount pending in authorization is blocked.
What is the purpose of authorization on credit cards?
Provisioning, which is the security process before the accounting of transactions on credit cards issued by a bank, is used to establish transaction security between the bank, the seller and the credit card holder. In case of transactions with stolen cards, faulty or suspicious transactions, mis-sales, etc., the provision period allows the parties to cancel the transaction more easily before the transaction is recorded. For this reason, cancellations made as a result of the application of one of the parties during the provision process are not subject to the accounting process. It is transferred back to the accounts of both the seller and the buyer instantly or in a shorter period of time. Cancellations of provisioned payment transactions take a long time. If this process exceeds the statement cut-off date, it is reflected in the next statement cut-off date.
The most frequently encountered in transactions such as provisioning You can find detailed information about 3D Secure in our blog post.
It is approved electronically by the bank’s systems without the credit card user or sellers having to take any additional action after the shopping transaction. To cancel authorized transactions, customers simply need to contact customer service and provide the reason for cancellation. If justified reasons are provided, authorized transactions are canceled quickly and simply.
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