what is the purpose of authorization in amazon?

Amazon gets in touch with the bank that issued the payment method to verify its validity when you place a purchase. Although your bank holds the money until the transaction is completed or the permission has run its course, there has been no actual fee. Authorization are referred to as “waiting” or “processing” charges by some banks.

By implementing a payment authorization form procedure, you can demonstrate to your processor that you are serious about your obligation to accept payments and that you are doing your part to lower the possibility of fraudulent transactions taking place.

An authorization is a directive that tells the customer’s issuing bank to ringfence the money on the customer’s credit card so that they can’t use it elsewhere.