In the standard flow, which party is contacted after the card network to complete the payment authorization?

In the standard flow, which party is contacted after the card network to complete the payment authorization?

• A. Acquiring bank
• B. Payment gateway
• C. Issuing bank
• D. Processor

Answer: (C)

The issuing bank. In the authorization flow, the card network serves as a routing hub that forwards the authorization request to the cardholder’s bank—the issuing bank. It is the issuer that checks whether funds are available, the card is valid, and whether there are any fraud or risk flags. The issuer then approves or declines the transaction, sending the response back through the card network to the merchant’s processor and acquirer. So after the card network, the next step is the issuing bank, which makes the actual decision on the authorization.

The issuing bank. In the authorization flow, the card network serves as a routing hub that forwards the authorization request to the cardholder’s bank—the issuing bank. It is the issuer that checks whether funds are available, the card is valid, and whether there are any fraud or risk flags. The issuer then approves or declines the transaction, sending the response back through the card network to the merchant’s processor and acquirer. So after the card network, the next step is the issuing bank, which makes the actual decision on the authorization.