A numeric sequence used by merchants, particularly in situations where electronic verification is unavailable or declined, facilitates contact with an issuer to confirm the validity of a transaction. This process typically involves relaying transaction details to a representative who then assesses risk factors and approves or denies the purchase. An example would be a retail store contacting the card issuer’s center when a card swipe fails, and the terminal prompts for a voice authorization.
This process is crucial for mitigating fraud, especially in scenarios where standard electronic verification methods are insufficient. Its origins lie in the early days of electronic payment processing, offering a fallback mechanism before widespread, reliable online systems were established. This ensured businesses could still accept card payments with reasonable assurance, contributing to the growth of the credit card industry and consumer confidence in using cards for transactions.
