Authorization

Authorization is the step where the card's issuer approves a payment for a specific amount and reserves those funds on the customer's account. It confirms the card is valid and the money is available — but it doesn't move the money yet. That happens at capture.

Authorize now, capture later

Splitting authorization from capture is useful when the final amount isn't known at checkout:

• Ecommerce — authorize when the order is placed, capture when it ships.
• Hospitality and rentals — authorize a hold, capture the final total at checkout.

The reserved funds sit as an authorization hold until you capture or the authorization expires.

When authorization fails

If the issuer refuses — insufficient funds, a suspected-fraud flag, or an expired card — you get a declined payment instead of an approval, and no funds are reserved.