In the authorization step, the goal is to validate the credit card as well as verify that sufficient funds will be available to complete the transaction. To do this, the authorization request flows from the merchant’s web server or POS terminal to the issuing bank. The issuing bank analyzes the information and returns a response (approval or decline) back through the same pathway in reverse. If the transaction is approved, the issuing bank holds credit for the authorized amount pending the eventual capture of the transaction.