Which of the following payment methods requires prior authorization for every transaction?

The payment method that requires prior authorization for every transaction is cheque payment. When using a cheque, the payer must actively authorize each transaction by writing a cheque for the specific amount intended for the payee. This means that for every individual transaction, the payer's consent is required, as opposed to other payment methods that might not require the same level of individual authorization each time.

For example, with direct credits or standing orders, once set up, these payments can occur automatically without requiring immediate, individual authorization for each transaction. Likewise, direct debits, while they also require prior authorization, allow the creditor to withdraw varying amounts on agreed-upon dates without needing separate authorization for each withdrawal. In contrast, cheque payments necessitate direct action from the payer for each payment, ensuring that every transaction is explicitly authorized by them.