Authorization and Capture is a two-step payment process that first allows you to reserve funds on a customer's card via an authorization hold, and collect (capture) them later. This method is useful when the final cost is not known upfront— such as pre-orders, services billed after delivery or hotel reservations, or when you want flexibility to adjust or cancel before capture.

The process consists of two distinct steps:

1. Authorization: The system verifies the card and places a temporary hold on the customer's funds. The purpose of this step is for the issuing bank to verify that the customer has sufficient funds or credit available and places a hold on the specified amount. No money is moved at this point—only reserved.

   Note

   • You can cancel the authorization amount before capture by issuing a void, if needed.
   • If you do not capture the funds within the hold window, the authorization expires and the funds are released.

2. Capture: The system charges the card and transfers the held funds to your account. Here, you request the issuer to transfer the authorized amount to your account. This step must be completed within the hold window to ensure funds are successfully collected.

   You can perform either a single or multiple captures against one authorization.

   • Full capture: You capture the full or partial amount in one request. Any unclaimed amount is automatically voided. Example: You authorize $100. The customer cancels one item, bringing the total to $80. You capture $80. The remaining $20 is voided.
   • Multiple captures: You capture funds in separate steps. Total capture amount must not exceed the original authorization. Example: You authorize $150 for an order with two items. You ship the first item and capture $75. A few days later, you ship the second item and capture another $75, totaling $150.

Example Use Case

Scenario: A hotel charges guests at checkout, not during booking.

1. At booking: You authorize $500 to reserve funds on the guest’s card.
2. At checkout: You calculate the final total is $460 (after discount) and capture $460.
3. The remaining $40 is automatically voided after certain time period.

Working of Authorization & Capture

Step 1: Authorize Payment

To create a Authorization:

1. Use the POST /checkout/v3/payment endpoint that includes:

   Parameter	Description
   ternderType	Set to CARD for card transactions.
   amount	Amount of Authorization (in US currency units)
   cardAccount	Valid Card details or secure Token. Refer to Card Vaulting to generate a valid token.
   merchantId	Merchant location ID
   authOnly	Must be TRUE to use separate capture.

2. PCE authorizes the payment with the issuer, captures the funds instantly. The GET /checkout/v3/payment/{id} endpoint gives a response with:

   • id: Unique identifier for the payment
   • paymentToken: Secure token for future operations like capture, void, adjustments or refunds.
   • status: Status of the authorization. You will also receive the result in a webhook.

3. Wait for the Authorization webhook to learn the outcome of the request.

You can store the id and paymentToken for:

• Retrieving payment details later.
• Making adjustments.
• Creating Capture
• Voiding the payment (if needed).
• Issuing partial or full refunds.

Refer to Authorization Controls to understand how authorizations are handled.

Step 2: Capture Payment

To create a Capture:

1. Use the POST /checkout/v3/payment endpoint that includes:

   Parameter	Description
   ternderType	Set to CARD for card transactions.
   paymentToken	Reuse card details securely to capture the previously authorized payment.
   amount	Amount to be captured (in US currency units). Can be partial or full.
   merchantId	Merchant location ID

2. PCE authorizes the payment with the issuer, captures the funds instantly. The GET /checkout/v3/payment/{id} endpoint gives a response with:

   • id: Unique identifier for the payment
   • paymentToken: Secure token for future operations like capture, void, adjustments or refunds.
   • status: Status of the capture. You will also receive the result in a webhook.

3. Wait for the Capture webhook to learn the outcome of the request.

You can store the id and paymentToken for:

• Retrieving payment details later.
• Making adjustments.
• Voiding the capture (if needed).
• Issuing partial or full refunds.

Refer to Capture Controls to understand know more about partial and full captures.

See Also

• Auth Controls
• Capture Controls
• Payments lifecycle
• Tokenization