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Authorization option is the way to collect the payments on your form while not making a charge right away. It is a sort of reservation of money if you wish.
For example, if a pizza delivery company made a form, they could have the form authorize the payment (or simply, say to payment processor that they agree for the same amount to be taken from their account), then once they deliver pizza, they can simply confirm the payment on the same authorization (without any further interaction from the person that submitted the form and authorized the payment at that time).
Hope this gives you more details on the same, but I also suggest checking out the following guide on the same as well: How to Enable Payment Authorization