Zero-Value Authorization

A zero-value authorization is an authorization request made with a value of 0 (EUR/USD/etc.). This type of authorization is utilized primarily to store card details or obtain shopper information without actually charging the cardholder any amount. Zero-value authorizations are often employed in scenarios where a merchant needs to verify the validity of a payment card or retrieve shopper details to cross-reference previous purchases or other information from the merchant's database.

One common use of zero-value authorization is during the submission of a Bank Identification Number (BIN) or a card verification request. By performing a zero-value authorization, the merchant can confirm that the card is active and that the card details provided are accurate, without placing a hold on any funds in the cardholder's account. This process helps to ensure that subsequent transactions, if any, will be processed smoothly and that the card information on file is up-to-date.

Zero-value authorization is beneficial for both merchants and customers. For merchants, it provides a way to validate card information, reduce the risk of declined transactions, and enhance the overall customer experience by ensuring accurate and efficient processing of payments. For customers, it offers the assurance that their card details are being verified without any funds being held or charged, contributing to a seamless and secure transaction process.

In summary, zero-value authorization is a crucial tool in the payment processing landscape, enabling merchants to verify card details and obtain necessary shopper information without impacting the cardholder's account balance.