When a customer makes a payment, it’s easy to assume the money moves instantly from their account to yours. But in reality, there’s a gap between getting approval from the card issuer and receiving the funds. That gap is where payment capture takes place, and how you handle it can impact cash flow, the customer experience, and your exposure to fraud. Below, we’ll explain how to understand payment capture and use it strategically across your business.

What’s in this article?

• What is payment capture?
  
• Why does the timing of payment capture matter for your business?
  
• How does payment capture differ from authorisation?
  
• What industries benefit the most from delayed vs immediate capture?
  
• What risks are associated with failed or partial captures?
  

What is payment capture?

Payment capture is the moment when the acquirer starts the process of moving money from your customer’s account to yours. It happens after authorisation, which is when the customer’s bank approves the charge, and before settlement, which is when the funds arrive in your business bank account.

If you see a payment marked as “authorised but not yet captured”, that means the money is reserved but hasn’t been collected yet. Once captured, the funds are on their way to your account.

You usually capture the exact amount authorised, but in some cases (e.g. when the final amount changes due to tips or adjustments) the amount captured can change slightly. In many systems, capture happens automatically after authorisation, but businesses can choose to separate the two steps and hold off on capture until later.

Why does the timing of payment capture matter for your business?

When you capture a payment shapes how money moves through your business. Capture timing affects your cash flow, how easily you manage changes or cancellations, how you mitigate fraud, and even how customers perceive the transaction. Here’s a closer look.

Cash flow

Capturing payment right after authorisation begins the process of getting paid. That’s important if your business relies on quick access to cash to order inventory, pay suppliers, cover payroll, or reinvest in growth.

Even though card settlements aren’t instant – they typically take 1–3 business days – immediate capture gets your funds moving. Delaying capture slows your cash cycle. In effect, you’re extending short-term credit to your customer without interest or any real guarantee they’ll still have the funds when you’re ready to collect.

Flexibility

Delaying capture gives you more flexibility. If something changes shortly after the transaction (e.g. a customer cancels, your stock runs out, you discover an error), you can void the authorisation instead of refunding a completed charge.

Here’s why this matters:

• You can void an authorisation without moving money so you don’t need to process a refund or pay associated fees.

• The hold on the customer’s card is released automatically without requiring the customer to file a support ticket.

• You avoid back-and-forth accounting entries for transactions that never really happened.

This buffer can simplify your operations, minimise payment support load, and create a better experience for customers.

Risk management

Capture delay is also a risk control tool. If you suspect a transaction might be fraudulent, you can use the window between authorisation and capture to run fraud checks, verify identities, or flag unusual orders.

If it shows warning signs, you can cancel the authorisation without needing to fight a chargeback later or absorb a loss. This approach can reduce your exposure to high-risk transactions, prevent disputes before they happen, and save you from absorbing chargeback fees.

Immediate capture often means money moves before you’ve had a chance to spot a problem, while delayed capture gives you a buffer.

Customer experience

In some industries, customers expect to be charged only when the product ships or the service is fulfilled. If you capture payment too early, that can raise questions such as the following:

• “Why did I get charged for something that hasn’t shipped yet?”

• “Are they holding my money indefinitely?”

• “Is this business legitimate?”

Capturing only when the transaction is complete – whether that’s at checkout at a hotel, on delivery of a custom item, or on shipment of a back-ordered product – can make customers feel more comfortable. In other cases, such as digital goods and subscriptions, immediate capture makes sense. What matters is that you match your capture timing to when value is delivered.

How does payment capture differ from authorisation?

Authorisation and capture are two steps in the same payment flow, but they serve different purposes. Understanding the difference matters when you’re managing risk, cash flow, and the customer experience.

Authorisation

When a customer makes a purchase, the payment system asks their bank whether the charge can go through. If the bank approves, that’s authorisation. No money has moved yet, but it’s been set aside and the customer can’t spend it elsewhere.

With most card networks and issuers, an authorisation stays valid for about seven days. If you don’t capture the funds before it expires, the authorisation is released and the payment disappears.

A status like “payment authorised but not yet captured” means you have approval to complete the charge, but the funds are still pending. You haven’t been paid yet.

Capture

Capturing the payment is the step that begins the process of transferring the money from the customer’s account to yours. It’s the point at which the sale becomes real.

After you capture payment:

• The bank sends you the funds

• The customer’s card is officially charged

• The transaction shows up as complete in your system and on the customer’s statement

What industries benefit the most from delayed vs immediate capture?

The right capture timing depends on how your business delivers value. If the product or service is delivered instantly, immediate capture makes sense. But if there’s a delay between the purchase and fulfilment or if the final amount isn’t known up front, delayed capture gives you more control.

When delayed capture makes sense

Delayed capture works best when the final amount might change or fulfilment happens later.
Industries that rely on delayed capture typically need flexibility. Here are a few examples:

• Hotels: A hotel authorises your card at check-in (often with a buffer for extras) but captures the payment at checkout, once your full bill is finalised.

• Car rentals: Rental companies pre-authorise your card when you pick up the car, then capture payment after you return it, adjusting for fuel, time, or damage.

• Fuel stations: Pay-at-the-pump systems authorise a preset amount before fuelling begins, then capture the actual amount pumped once the transaction is complete.

• Restaurants: Restaurants authorise your card for the meal total before you add a tip and capture the final amount afterwards.

• E-commerce pre-orders or back orders: If an item isn’t ready to ship, many businesses authorise the card at purchase but delay capture until fulfilment. This way, they avoid charging customers before anything’s been delivered.

• Custom goods or services: It’s common to authorise up front for made-to-order products or services with variable pricing, then capture later when the order is finalised and delivered.

In these cases, delayed capture aligns charging with the actual moment of delivery. This gives businesses room to make changes and reduces the need for refunds or follow-up charges.

When immediate capture makes sense

Immediate capture is ideal when the transaction is simple and complete. Capturing immediately is typically more efficient for businesses that fulfil orders instantly or have clear, fixed pricing. It’s the default for the following:

• Retail e-commerce: If the item is in stock and ready to ship, there’s usually no reason to delay.

• Digital goods and services: For software or anything delivered instantly, immediate capture confirms the sale and simplifies reconciliation.

• Low-touch purchases: Small, online transactions typically capture payment right away.

• Subscription billing: Recurring charges are typically captured the moment a new billing cycle begins. The customer gets continued access to the service, and the business gets paid without delay.

What risks are associated with failed or partial captures?

Delayed capture gives you flexibility, but it also adds risks. If you’re not careful with timing or workflows, you can lose revenue, miss the capture window, and frustrate customers. Here’s what to watch for.

Expired authorisations

Authorisations typically expire within a week, depending on the card network and issuer. If you don’t capture the payment in time, the transaction can’t be completed.

At that point, you’ll have to reauthorise the charge, which might require customer action, and delay fulfilment until the new charge goes through. In the worst-case scenario, you might have to absorb the loss if you’ve already delivered the product or service.

This kind of oversight can add up for businesses with high volumes or longer fulfilment cycles. You need a system to flag pending captures before authorisations expire.

Incomplete partial captures

Once you submit a partial capture, the remaining funds are released. You generally can’t go back and capture more from the same authorisation or “top up” the charge later without reauthorising a new transaction. If your original authorisation underestimated the total (or if something changes after checkout), you’ll either need to eat the difference or request a second payment – neither of which is ideal.

Some systems support multiple partial captures from one authorisation, but that needs to be set up intentionally. Without that configuration, partial capture behaves more like a one-shot opportunity.

Failed capture attempts

Even if the authorisation is valid, the capture itself can fail due to technical issues with your payment processor, missing transaction details, or the card being marked as stolen or closed after authorisation.

When that happens, the funds don’t transfer and you’re left chasing down the customer for a new payment method. That introduces delays, administrative overhead, and potential churn.

Administrative errors

Manual capture flows add a layer of responsibility. If someone on your team forgets to capture payment or captures the wrong amount, the payment either fails or doesn’t fully reflect what was delivered.

This can lead to uncollected revenue, issues with reconciliation, and support tickets when customers see mismatched charges.

To avoid that, businesses often rely on dashboards or reports to track “authorised but not captured” payments. Some platforms also offer alerts or auto-capture options, which is helpful if you’re working with high volumes or small teams.