Payment capture
What is payment capture?
Payment capture is the process of collecting previously authorized funds from a cardholder's account and transferring them to the merchant. It completes the payment that began at .
Payment capture and are often used interchangeably, but they are two different points in the flow. Capture is when the merchant requests to collect the authorized funds. Settlement is when those funds actually move from the cardholder's bank to the merchant account, typically 1-3 business days later, depending on the acquirer and card scheme. When capture occurs, applicable fees are applied and the final transaction amount is finalized; after deductions, the remaining funds are routed to the merchant account.
Key facts
- Also described as: collecting or "clearing" authorized funds; the step between authorization and settlement.
- Capture methods: automatic capture (funds captured immediately after authorization) and manual capture (the merchant captures later, individually or in batches).
- Partial capture: the captured amount can be less than the authorized amount when the final cost isn't known upfront – common with hotel stays (incidentals added later) or fuel stations (which pre-authorize a higher amount). The unused portion of the hold is then released.
- Capture window: authorizations generally need to be captured within about 7 days, though the exact window depends on the card scheme and merchant category. After it lapses, the issuing bank can drop the hold and return the funds to the cardholder.
How payment capture works
- Authorization – at checkout, the issuer approves the transaction and places an authorization hold that reserves the funds on the cardholder's account without moving them.
- Capture request – the merchant submits a capture, either automatically right after approval or manually once the order is ready to fulfill.
- Amount finalized – the issuer marks the funds for transfer, applicable processing fees are applied, and the final transaction amount is locked in.
- Settlement – the captured funds move from the issuing bank through the acquirer to the merchant account, typically within 1-3 business days.
Why it matters
Authorization only reserves money; capture is the step that actually moves it, so a transaction the merchant never captures is a sale that never gets paid. Manual capture lets a merchant confirm stock or fulfillment before collecting funds, which avoids charging for orders that can't be shipped. If the capture window lapses, the issuer releases the hold and the funds return to the cardholder, forcing the merchant to request a fresh authorization before it can collect.
Common issues
- Expired authorization – capturing after the hold has lapsed fails, and the transaction must be re-authorized before funds can be collected.
- Capturing before fulfillment – collecting funds for goods that are delayed or unavailable raises refund volume and the risk of a .
- Amount changes after authorization – when the final total differs from the approved amount, an updates the hold before capture, while a partial capture collects less and releases the rest.
- Canceling before capture – to reverse an approval that hasn't been captured yet, the merchant uses a rather than a refund.
