Foundation · 2 min
What you need to know
What is authorisation?
Authorisation is the issuing bank’s confirmation that the customer has sufficient funds or credit and that the card details are valid. It places a hold on the customer’s funds for the requested amount. Authorisation does not collect money — it reserves it.
What is capture?
Capture is the instruction sent to the processor to collect the authorised funds. Some stores capture immediately at checkout; others delay capture until the order is ready to ship. Captured funds move into the settlement process.
What is settlement?
Settlement is the process by which captured funds are transferred from the acquiring bank to the merchant’s bank account. Settlement typically happens on a schedule — daily or on business days — and may take one to several days depending on the provider and payment method.
When should capture be delayed?
Delay capture when the final order amount may change, such as for made-to-order products, variable-weight items, or orders that may be partially fulfilled. Capture only the amount that matches what will actually be dispatched.
What is reconciliation?
Reconciliation matches the payments the processor reports as settled against the orders and amounts in the store. Discrepancies can come from timing differences, fees, partial captures or refunds. Keep a record of each transaction’s provider reference to support accurate reconciliation.
Foundation · 2 min
Frequently asked questions
What happens if I capture more than was authorized?
Most providers will reject a capture that exceeds the authorised amount. Some allow a small overage within defined limits. Check the provider’s rules and only capture the exact confirmed amount.
How long does an authorization hold last?
Authorization holds expire after a provider- and card-network-defined period, commonly 7 to 30 days. If capture does not happen before expiry, the hold is released and the funds return to the customer. Re-authorisation may be needed for delayed orders.