What is the difference between Authorization and Adjudication?

Authorization happens at the point-of-sale and confirms that:

1. The transaction is valid
2. The card is active
3. There are sufficient funds
4. The Merchant Category Code (MCC) is applicable to medical expenses

Adjudication happens after the sale and confirms:

1. The transaction meets the administrator-defined criteria for the plan
2. The transaction matches a defined copay amount or copay multiple, threshold requirement, or is a recurring expense
3. Card transaction eligibility