Which of the following describes the Authorization process in payment transactions?

The authorization process in payment transactions is specifically focused on establishing and confirming a cardholder's ability to make a purchase. During this step, the merchant contacts the cardholder's bank (the issuer) to check whether the cardholder has sufficient available credit or funds to complete the transaction. If the issuer approves the transaction, it confirms that the cardholder is authorized to spend up to the available limit, thus allowing the transaction to proceed. This step is crucial for preventing fraud and ensuring that both the merchant and the cardholder are protected during the transaction.

The other options relate to different aspects of payment processing. Storing cardholder data speaks to data security and compliance but does not involve the transaction process per se. The settlement of financial transactions pertains to the final step in the payment lifecycle where funds are transferred between banks, occurring after the authorization phase. Lastly, assessing compliance with PCI DSS deals with evaluating a company's adherence to security standards but does not describe the transaction authorization process itself. Each of these reflects different functions within payment processing and security, further highlighting why the correct answer centers on the authorization aspect specifically.