Online Authorization (OLA) is a system used to verify a transaction on a payment card (e.g.
credit card
A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the o ...
). 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
Visa most commonly refers to:
*Visa Inc., a US multinational financial and payment cards company
** Visa Debit card issued by the above company
** Visa Electron, a debit card
** Visa Plus, an interbank network
*Travel visa, a document that allows ...
or
Mastercard and is now being implemented in others (such as fuel cards).
During on-line аuthorisation:
* The cardholder's PIN is encrypted by ATM POS PINpad secure module (
HSM) and sent to an issuer bank.
* A card cryptogram is sent to an issuer bank (
smart card
A smart card, chip card, or integrated circuit card (ICC or IC card) is a physical electronic authentication device, used to control access to a resource. It is typically a plastic credit card-sized card with an embedded integrated circuit (IC) c ...
,
EMV
EMV is a payment method based on a technical standard for smart payment cards and for payment terminals and automated teller machines which can accept them. EMV stands for " Europay, Mastercard, and Visa", the three companies that created th ...
).
* An issuer bank verifies the PIN or check card cryptogram.
* An issuer bank makes finance verification (on-time limit, credit limit, ...)
* An issuer bank sends OK or !OK (+optional command list for
EMV
EMV is a payment method based on a technical standard for smart payment cards and for payment terminals and automated teller machines which can accept them. EMV stands for " Europay, Mastercard, and Visa", the three companies that created th ...
card).
(The recrypt PIN block process is not included in list.)
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.
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Credit card terminology