What Is an Authorization Code? An authorization code is an alphanumeric password that authorizes its user to purchase, sell or transfer items, or to enter information into a security-protected space. An authorization code is typically a sequence of letters, numbers, or a combination of both, that validates a person’s identity, approves a transaction or provides
What Is the Authorization Date? The authorization date is the date at which a credit or debit card transaction is approved by the credit card issuer. The authorization date is one of the critical stages in the process of authorizing and rendering electronic payments. Key Takeaways The authorization date is the date at which a
What Is Authorization Only? Authorization only is a type of payment card transaction that holds funds from a cardholder’s account for settlement at a later date. When an individual makes a purchase with a credit or debit card, the institution from which the purchase is made has to seek authorization to process the transaction from the issuer
What Is an Authorized Investment? An authorized investment is one that is made by a trustee–or fiduciary–that follows the written instructions in a trust. Many trust documents specifically exclude certain speculative investments, in order to ensure that trust funds are managed conservatively. In the past, some states limited the types of investments that a trust
What Is an Authorized Participant? An authorized participant is an organization that has the right to create and redeem shares of an exchange traded fund (ETF). They provide a large portion of the liquidity in the ETF market by obtaining the underlying assets required to create the shares of an ETF. When there is a
What Is Authorized Share Capital? Authorized share capital is the number of stock units (shares) that a company can issue as stated in its memorandum of association or its articles of incorporation. Authorized share capital is often not fully used by management in order to leave room for future issuance of additional stock in case
What is Authorized Stock? Authorized stock, or authorized shares, refers to the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation in the U.S., or in the company’s charter in other parts of the world. It is also usually listed in the capital accounts section
What Is an Authorized Transaction? An authorized transaction is a debit or credit card purchase for which the merchant has received approval from the bank that issued the customer’s payment card. Key Takeaways An authorized transaction is a debit or credit card purchase for which the merchant has received approval from the bank that issued
What Is an Auto Enrollment Plan? An auto-enrollment plan is a retirement savings plan in which employees are automatically enrolled to contribute a certain amount of their salary each paycheck. Auto-enrollment plans don’t require the employee to take action or to explicitly consent to participate in an employer-sponsored retirement plan, like a 401(k). In such
What Is Automated Underwriting? Automated underwriting is a technology-driven underwriting process that provides a computer generated loan decision. The lending industry is broadly migrating to the use of new technology-driven loan underwriting platforms to improve the processing time for all types of loans. Key Takeaways Underwriting is the process of evaluating the risk involved with
