Documentation Index
Fetch the complete documentation index at: https://payglocal.mintlify.app/llms.txt
Use this file to discover all available pages before exploring further.
What is Auth & Capture?
Auth & Capture is a two-step payment flow where the payment is first authorized (funds are held/reserved) and later captured (money is actually charged). This payment flow is useful for businesses where the final confirmation, product shipment, or service fulfillment happens after the customer places the order.Step 1: Authorization
Verify & Hold
- Verify the payment method
- Check sufficient funds
- Temporarily block the amount
- Do NOT deduct money yet
Step 2: Capture
Confirm & Charge
- Merchant confirms transaction
- Actual deduction happens
- Money gets settled to merchant
- After shipment/fulfillment
How It Works
Instead of charging the customer immediately:- First: Merchant authorizes the payment
- Then: Bank temporarily blocks the amount on the customer’s card/account
- Next: Once product/service is confirmed, merchant captures the payment
- Finally: Funds are transferred successfully
At the authorization stage, the customer sees the amount as “held” or “pending”. The merchant has assurance that funds are available, but no actual settlement happens yet.
Why Businesses Use Auth & Capture
This flow is ideal when:- Delivery confirmation is required
- Inventory may change
- Final amount may vary
- Services are fulfilled later
- Merchant wants fraud protection
- Merchant wants payment assurance before fulfillment
Real-World Examples
Airlines
When a customer books a flight:
- Payment is authorized first
- Airline confirms seat allocation
- Payment is captured after ticket confirmation
- Fare availability may change
- Seat confirmation may fail
- Final booking validation needed
Key Benefits
Payment Assurance
Merchant knows customer has sufficient funds before fulfillment.Better Customer Experience
Customer is charged only when order/service is confirmed.Reduced Refunds
Since money is not immediately captured, failed orders may simply release authorization instead of processing refunds.Flexible Fulfillment
Merchant can:- Capture full amount
- Capture partial amount
- Reverse authorization
- Perform multiple captures (if supported)
Auth & Capture Lifecycle
Step 1 — Payment Authorization
Customer initiates payment. Merchant sends:- Amount
- Card/payment details
- Authorization request
- Validates payment method
- Checks available balance
- Places hold on funds
AUTHORIZED
Step 2 — Hold Period
Funds remain reserved for a limited duration. Typical authorization validity:- 5 to 7 days
- Sometimes up to 30 days depending on card network
- Capture payment (full or partial)
- Reverse authorization
- Wait for fulfillment confirmation
Step 3 — Capture
Merchant captures the payment after confirmation. Examples of when to capture:- Product shipped
- Hotel checkout completed
- Flight ticket confirmed
- Service delivered
CAPTURED
Actual settlement starts here — funds are transferred to merchant’s account.
Step 4 — Reversal (Optional)
If order/service is cancelled, merchant can reverse authorization. What happens:- Held amount gets released back to customer
- No actual charge occurs
- Payment status becomes
REVERSEDorCANCELLED
- Order cancelled by customer
- Stock unavailable
- Booking failed
- Fraud detected
Auth reversal avoids unnecessary refunds since the money was never actually charged.
Partial Capture
Merchant may capture only part of the authorized amount. Example:- Authorized amount: ₹10,000
- Captured amount: ₹7,000
- Remaining ₹3,000 gets released automatically or reversed manually
- Partial shipment (some items out of stock)
- Variable billing (final amount differs)
- Inventory shortage
- Split fulfillment
Full Capture
Capture the complete authorized amount when order is fully fulfilled.
Partial Capture
Capture only what you need — remainder is released automatically.
Auth Reversal Explained
Auth reversal releases held funds without charging the customer.When to Use Reversal
| Scenario | Action |
|---|---|
| Order cancelled before fulfillment | Reverse authorization |
| Stock unavailable | Reverse authorization |
| Booking failed | Reverse authorization |
| Fraud detected | Reverse authorization |
| Payment already captured | Use refund (not reversal) |
Summary: Authorization vs Capture vs Reversal
| Action | What It Does | When To Use | Status After |
|---|---|---|---|
| Authorization | Holds funds on customer’s card | At order placement | AUTHORIZED |
| Full Capture | Charges the full authorized amount | After complete fulfillment | CAPTURED |
| Partial Capture | Charges only part of authorized amount | Partial shipment/fulfillment | CAPTURED |
| Reversal | Releases hold without charging | Order cancelled before capture | REVERSED |
Next Steps
Now that you understand how Auth & Capture works, learn how to implement it:Auth Payment Initiation
Start an authorization to hold funds on the customer’s card.
Authorization Management
Capture funds or release the hold after authorization.