The word "provizyon" comes from French and means obtaining approval for a transaction.
In payment systems, authorization is the confirmation that the card and POS status, the bank accounts, or the transaction limits are sufficient to make the payment, for transactions carried out with cards.
At the moment a transaction is made through a POS, virtual POS, or ATM, it is approved separately by both the card bank and the POS bank, and based on that approval, authorization is given to the transaction.
At the moment authorization is given for a transaction made with a credit card, the amount does not yet appear on the credit card statement, but it does reduce the credit card's available limit. This transaction appears on the credit card statement a few days later.
For authorization transactions made with a debit card, the customer's account balance is reduced by the authorized amount at the time of the transaction.
The difference between authorization and reconciliation
Authorization tells us whether the transaction is valid at that moment. The actual movement of money happens through the clearing and reconciliation process carried out at the end of the day. The amount credited to the merchant's account is settled after clearing.
If a transaction is cancelled, the authorization is also reversed; this is called a reversal. This releases the available limit again.
From the cardholder's perspective, the amount shown on the statement is the final record that arrives a few days after the authorization.