Authorisation vs capture: the two steps of a card payment
By SendPay Business · · 2 min read
A card payment usually happens in two steps. Authorisation checks the card and reserves the money. Capture tells the card network to actually take it. Many online payments do both at once, but they can be split.
How the two steps work
- The customer pays and the card details go to the card issuer.
- The issuer checks funds and fraud rules, then approves and holds the amount. That's authorisation.
- The business confirms the final amount and sends a capture request.
- The captured payment is then cleared and settled to the business.
Why capture later?
Hotels, car hire firms and shops that ship goods later often authorise first and capture once the final amount is known or the order is sent. This avoids refunds if an order changes or is cancelled.
When an authorisation expires
Holds don't last forever. The time limit depends on the card scheme and type of business, often around a week. If the payment isn't captured in time, the hold drops off and the customer's money is released.
Where SendPay fits
SendPay platforms let your customers get paid with payment links, invoices and subscriptions, alongside GBP, EUR and USD accounts and branded Visa cards under your own brand, powered by licensed partners.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.