The process of finalizing a preauthorized transaction, ensuring funds are transferred from the cardholder's account.
For card transactions, the final step between authorization and funds dispersal is capture. Understanding this pivotal part of the payment processing cycle unlocks a merchant’s ability to finalize sales confidently. Let’s explore what capture entails and best practices around it.
Capture occurs after a merchant receives card authorization but before settlement. The merchant "captures" the authorized transaction to claim its completion and initiate the transfer of approved funds.
Capturing solidifies the sales agreement. It converts preliminary card approvals into closed transactions destined for bank deposits. Merchants can even delay capturing for up to several days after authorization.
Prompt capture offers advantages like:
Authorization alone doesn’t complete a card payment - merchants must close the loop with timely capture. Sealing transactions swiftly brings sales to fruition while optimizing cash flow.