An authorisation code serves as a distinct identifier produced by a cardholder's financial institution to sanction a particular transaction. During the payment process, the issuing bank assesses the card's validity, ensures that adequate funds or credit are accessible, and confirms the legitimacy of the transaction. Upon the completion of these evaluations, the authorisation code is generated, indicating that the bank has granted approval for the payment. This code is essential for maintaining secure transactions, enabling merchants to confidently proceed, knowing that the payment will be successfully processed.
In the travel sector, authorisation codes are essential for facilitating secure and efficient payment transactions. Due to the significant monetary value associated with services like flight reservations, hotel bookings, and holiday packages, it is imperative to verify the legitimacy of payments. When customers make online bookings, their card issuer issues an authoriaation code upon validating that adequate funds are available and the transaction is legitimate. This code serves as a guarantee for travel companies that the payment has been authorised, thereby minimising the potential for fraud and chargebacks, while also allowing for smoother bookings and quicker confirmations for customers.
Travel companies frequently encounter difficulties with authorisation codes due to the intricate and global characteristics of the industry. A primary concern is the occurrence of payment declines during the authorisation phase, which may stem from discrepancies in currencies, restrictions imposed by card issuers, or inadequate funds. These issues can lead to lost reservations and dissatisfied customers. Furthermore, the risk of fraudulent transactions poses a considerable threat, as travel bookings typically involve substantial payments that can attract malicious actors. Striking a balance between ensuring secure transactions and maintaining a positive customer experience is a challenging task for travel companies.
Another significant challenge involves the management of chargebacks, which may arise from disputes related to unauthorised transactions or dissatisfaction with services rendered. To address these disputes effectively, travel companies must invest in comprehensive systems; however, the complexities associated with international transactions and differing regulations often hinder efficient management of these challenges.
Felloh ensures smooth authorisation processes by integrating with multiple acquirers to provide higher success rates in transaction approval. Real-time tracking allows travel companies to resolve issues promptly and maintain customer satisfaction.
Our booking reconciliation feature ensures that all payments received—whether through card payments, bank transfers, or other methods—are automatically linked to their associated booking, eliminating the need for manual receipting.
