Authorization

Authorization is the step where the card's issuer approves a payment for a set amount and reserves the funds. It confirms the card is valid and the money is there. It doesn't move the money. That happens at capture.

Authorize now, capture later

You can separate authorization from capture when the final amount isn't known at checkout:

• An online store authorizes when the order is placed and captures when it ships.
• A hotel or rental company authorizes a hold and captures the final total at checkout.

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

When authorization fails

If the issuer refuses, for example because of insufficient funds, suspected fraud, or an expired card, you get a declined payment. No funds are reserved.