Voice Authorization
A manual transaction authorization obtained by merchants calling their processor's authorization center when electronic authorization systems are unavailable, resulting in higher costs and less favorable interchange rates.
Voice authorizations serve as a backup when normal electronic authorization processes cannot be completed due to internet outages, terminal malfunctions, declined transactions requiring additional verification, or unusually large transactions exceeding automated authorization limits. The merchant calls the processor's voice authorization phone number, provides transaction details including card number, expiration date, transaction amount, and cardholder information, and receives an authorization code if the transaction is approved. This approval code is recorded and entered manually when the transaction is later submitted for settlement.
Voice authorizations carry multiple cost disadvantages compared to electronic authorizations. Processors typically charge voice authorization fees ranging from $0.75 to $2.00 per call, substantially higher than standard electronic authorization fees of $0.02 to $0.10. Additionally, voice authorized transactions typically suffer interchange downgrades, qualifying for less favorable interchange categories that can cost 0.30% to 0.70% more than electronically authorized equivalents. These downgrades occur because voice authorizations lack the security validation data (AVS, CVV, EMV chip authentication) that card networks use to assess risk and determine interchange qualification.
Legitimate uses for voice authorization are limited and should be infrequent. Appropriate scenarios include temporary internet or power outages preventing electronic connectivity, terminal hardware failures requiring immediate backup while awaiting equipment service, large-ticket transactions that exceed merchant's standard authorization limits, or split-tender transactions where electronic systems cannot accommodate complex payment arrangements. However, frequent voice authorization usage often indicates underlying problems such as outdated or malfunctioning terminal equipment, inadequate internet connectivity requiring infrastructure improvements, or improper terminal configuration preventing successful electronic authorizations. Merchants experiencing regular voice authorization needs should investigate and address root causes rather than accepting voice authorization as a standard operating procedure, as the cumulative costs of voice fees and interchange downgrades typically far exceed the investment in proper electronic authorization infrastructure.
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3D Secure
An authentication protocol for online card transactions that adds an additional verification layer between the cardholder and issuing bank, shifting fraud liability from merchants to card issuers when properly implemented.
ACH Payment
Automated Clearing House payment is an electronic bank-to-bank payment method that transfers funds directly between bank accounts through the ACH network, typically used for direct deposits, bill payments, and recurring transactions.
Acquirer
A financial institution that processes credit card payments on behalf of merchants, maintains merchant accounts, and facilitates the settlement of funds from card-issuing banks to merchant bank accounts.
Address Verification Service (AVS)
A fraud prevention tool that compares the numeric portions of a billing address provided during a transaction against the address registered with the card-issuing bank, returning match result codes to help merchants assess transaction risk.
Aggregator
A payment service provider that enables multiple merchants to process card transactions under a single master merchant account rather than each merchant having their own dedicated merchant account, common with services like Square, Stripe, and PayPal.