When does the authorization of a transaction typically take place?

The authorization of a transaction typically occurs at the time of purchase. During this phase, the payment processor verifies that sufficient funds or credit are available and confirms the transaction is legitimate before completing the sale. This essential step helps to mitigate the risk of fraud and ensures that the merchant receives payment for the goods or services being provided. It allows for an immediate check of the card's validity, ensuring a smoother transaction process for both the customer and the merchant.

Although the other options mention different phases of a transaction, only the point during the purchase captures the essence of authorization, which acts as a safeguard for financial operations in real time.