Authorisation vs capture: the two steps of a card payment
By SendPay Business · · 2 min read
- 1Your card appears in your app
- 2Tap it to pay in a shop
- 3See every payment as it happens
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.
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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.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
What is my card approval rate?
Work out your authorisation rate and what declines cost you.
Authorisation rate calculator →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
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. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.