Payments & Settlement

Capture

The step that converts an approved authorization into an actual charge, flagging the transaction to be settled and funded. Capturing only when you can fulfill the order helps avoid disputes over charges that ship late or not at all.

Merchants can capture the full authorized amount, a partial amount, or let an authorization expire. Aligning capture with fulfillment is a simple way to reduce chargebacks.

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Related terms

Payments & Settlement

Authorization

The step where a customer's bank confirms a card is valid and has funds available, placing a hold on the amount. Authorization approves the sale but does not yet move money — that happens at capture and settlement.

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Payments & Settlement

Authorization Hold

The temporary reduction in a cardholder's available balance created by an authorization, before the charge is captured. Holds expire if not captured, which is why the timing between authorization and fulfillment matters.

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Payments & Settlement

Settlement

The process of moving funds from captured transactions through the networks to the merchant's account, usually in daily batches. Settlement is when a sale actually becomes money you can spend, minus fees and any reserve.

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Payments & Settlement

Void

Canceling a transaction before it settles, releasing the authorization hold without a formal refund. Voiding a same-day error is cleaner than refunding after settlement, because no funds have moved yet.

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