Online authorisation


Online Authorization is a system used to verify a transaction on a payment card. The term 'on-line' refers to the real-time nature of the verification. In other words, if the account is overdrawn, in most cases, the transaction will be refused.
OLA is already commonplace for credit card networks such as Visa or Mastercard and is now being implemented in others.
During on-line аuthorisation:
  • The cardholder's PIN is encrypted by ATM POS PINpad secure module and sent to an issuer bank.
  • A card cryptogram is sent to an issuer bank.
  • An issuer bank verifies the PIN or check card cryptogram.
  • An issuer bank makes finance verification
  • An issuer bank sends OK or !OK.

The set of verifications performed by an issuer bank depends on the card type, payment system requests and features of the issuer bank's processing system.