When a card is used to make a purchase, an authorization request is made which is approved or declined based on the following steps:
- Stripe checks that the Issuing balance has sufficient funds, that the card is active, and that your spending controls allow the authorization
- Stripe sends an
issuing_authorization.requestwebhook event, letting you know we’re awaiting a decision about an authorization
- Before closing the
issuing_authorization.requestevent, you can approve or decline the authorization
- If you do not approve or decline the authorization within 2 seconds, Stripe uses your default settings to approve or decline the authorization
- Stripe sends an
issuing_authorization.createdwebhook event, letting you know the Authorization has been created
Once an authorization request is approved or declined, an
issuing_authorization.created webhook event is sent. If approved, the
amount is deducted from your Issuing balance and held in reserve until the authorization is either captured, voided, or expired without capture. If declined, the status is set to
closed and no holds are placed.
When the authorization is captured, a transaction is created and the
status of the authorization is set to
If the authorization request is voided or not captured in a timely manner, an
issuing_authorization.updated webhook event is sent and its status is set to
reversed. For authorizations not captured in a timely manner,
amount represents any remaining amount authorized for possible late captures.
Purchases in different currencies
Cards can be used for purchases in any currency that the card network supports. Stripe automatically converts the currency of the purchase into the card’s currency when holding funds, using the card network’s daily rate.
merchant_amount represents the cost of the purchase in the local currency. The
amount field represents the expected amount of the
Transaction in the card’s currency and is not final until the
Authorization has been captured.
Handling other authorizations
In addition to regular authorizations, there are a few other cases that you should be ready to handle.