What Is Capture?

Capture is the second step in the two-step card payment process (after authorization). When a merchant captures a transaction, they are confirming that the goods or services have been (or will be) delivered and instructing their payment processor to submit the transaction for settlement. Until capture occurs, the authorized amount is merely held on the cardholder's account — no funds are transferred.

## Authorization and Capture: The Two-Step Flow

The auth-and-capture model separates the approval of a transaction from the finalization:

1. **Authorization**: At checkout, the merchant requests authorization from the issuing bank. The issuer approves and places a temporary hold on the cardholder's funds. 2. **Capture**: When the merchant is ready to fulfill the order (typically when goods are shipped), they "capture" the authorized amount, submitting it for clearing and settlement.

This separation exists because merchants should not collect payment for goods or services they have not yet provided. For example, an online retailer authorizes the payment when the customer places the order but captures it only when the warehouse ships the package. If the item is out of stock, the merchant can void the authorization instead of capturing and then refunding.

## Capture Timing

The timing of capture varies by merchant type and industry:

- **Immediate capture**: Digital goods, SaaS subscriptions, and instant-delivery services typically capture immediately at the time of authorization because fulfillment is instant. - **Delayed capture**: Physical goods retailers capture when the order ships. Hotels capture at checkout. Car rental companies capture when the car is returned. - **Partial capture**: Some merchants capture less than the authorized amount. For example, if an order contained 3 items but only 2 are available, the merchant can capture a partial amount. Not all acquirers and card networks support partial capture.

## Authorization Expiration

If a merchant does not capture an authorized transaction within the allowed window, the authorization expires and the hold on the cardholder's funds is released. Authorization validity periods vary:

- **Visa**: 30 days for most merchant categories; 7 days for some categories. - **Mastercard**: 30 days for most categories; 7 days for some. - **Card networks penalize late captures**: Capturing after the authorization window often results in higher decline rates because the issuer treats it as a new transaction.

For merchants with long fulfillment timelines (e.g., custom manufacturing, pre-orders), this creates a challenge. Some merchants re-authorize before capture, while others use incremental authorizations to extend the hold.

## Auto-Capture

Most PSPs offer auto-capture, where authorization and capture happen simultaneously in a single API call. This is the default behavior in Stripe's charges API and is appropriate for merchants with immediate fulfillment. Merchants who need delayed capture must explicitly configure their integration to separate the two steps.

## Void vs Capture

If a merchant decides not to fulfill an authorized transaction, they issue a void (also called an authorization reversal) instead of capturing. A void releases the hold on the cardholder's funds without any settlement. Voids are preferable to refunds because they are faster (the hold is released immediately rather than waiting for capture, settlement, and then refund processing) and typically free (no processing fees, whereas refunds may incur fees with some processors).

## Multiple Captures

Some payment systems support multiple captures against a single authorization, known as multi-capture. This is useful for marketplace scenarios where different items in a single order ship from different vendors at different times. Each capture settles independently against the original authorization. Adyen and Stripe support multi-capture for eligible merchant categories.