Auth/Cap

Who is this for - Product managers, business owners, and stakeholders who need a high-level understanding of Authorization & Capture transactions and when to use them

Outcome - Understand how Authorization & Capture works, when to use it, and how it helps control when customer funds are reserved and collected

Authorization & Capture (Auth/Cap)

Authorization & Capture (Auth/Cap) is a two-step payment flow that allows merchants to reserve a specific amount on a customer’s card first, then capture the full or partial amount later once the final transaction details are confirmed.

What is an Authorization Transaction?

An authorization transaction places a temporary hold on a specified amount on the customer’s card. The funds are reserved but not yet transferred to the merchant.

What is a Capture Transaction?

A capture transaction is the step where the merchant collects the authorized funds or a part of it.

How Auth/Cap Works

1. Authorization is created
2. Funds are held
3. Final amount is confirmed
4. Capture is performed
5. The remaining amount is voided at the release time

Common Use Cases

Authorization & Capture is ideal when:

• The final amount is not known upfront
• Orders are shipped later
• Services are confirmed after checkout
• Partial fulfillment is possible
• Merchants want control over settlement timing