> ## Documentation Index
> Fetch the complete documentation index at: https://docs.payglocal.in/llms.txt
> Use this file to discover all available pages before exploring further.

# Auth & Capture

> Two-step payment flow: authorize funds first, capture when ready to fulfill.

## 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.

<CardGroup cols={2}>
  <Card title="Step 1: Authorization" icon="shield-check" color="#10B981">
    **Verify & Hold**

    * Verify the payment method
    * Check sufficient funds
    * Temporarily block the amount
    * **Do NOT deduct money yet**
  </Card>

  <Card title="Step 2: Capture" icon="circle-check" color="#1A6FE8">
    **Confirm & Charge**

    * Merchant confirms transaction
    * Actual deduction happens
    * Money gets settled to merchant
    * After shipment/fulfillment
  </Card>
</CardGroup>

***

## How It Works

Instead of charging the customer immediately:

1. **First:** Merchant authorizes the payment
2. **Then:** Bank temporarily blocks the amount on the customer's card/account
3. **Next:** Once product/service is confirmed, merchant captures the payment
4. **Finally:** Funds are transferred successfully

<Note>
  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.
</Note>

***

## 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

<Card title="Airlines" icon="plane" color="#1A6FE8">
  **When a customer books a flight:**

  1. Payment is authorized first
  2. Airline confirms seat allocation
  3. Payment is captured after ticket confirmation

  **Useful because:**

  * Fare availability may change
  * Seat confirmation may fail
  * Final booking validation needed
</Card>

***

## 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

**Bank:**

* Validates payment method
* Checks available balance
* Places hold on funds

**Result:** Payment status becomes `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

**During this period, merchant can:**

* Capture payment (full or partial)
* Reverse authorization
* Wait for fulfillment confirmation

<Warning>
  If authorization expires before capture, the hold is automatically released and the transaction becomes invalid.
</Warning>

***

### Step 3 — Capture

Merchant captures the payment after confirmation.

**Examples of when to capture:**

* Product shipped
* Hotel checkout completed
* Flight ticket confirmed
* Service delivered

**Result:** Payment status becomes `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 `REVERSED` or `CANCELLED`

**When to use reversal:**

* Order cancelled by customer
* Stock unavailable
* Booking failed
* Fraud detected

<Note>
  Auth reversal avoids unnecessary refunds since the money was never actually charged.
</Note>

***

## 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

**Useful for:**

* Partial shipment (some items out of stock)
* Variable billing (final amount differs)
* Inventory shortage
* Split fulfillment

<CardGroup cols={2}>
  <Card title="Full Capture" icon="circle-check" color="#10B981">
    Capture the complete authorized amount when order is fully fulfilled.
  </Card>

  <Card title="Partial Capture" icon="scissors" color="#F59E0B">
    Capture only what you need — remainder is released automatically.
  </Card>
</CardGroup>

***

## 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) |

<Warning>
  Auth reversal only works on `AUTHORIZED` transactions. Once captured, you must use the standard refund flow.
</Warning>

***

## 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:

<CardGroup cols={2}>
  <Card title="Auth Payment Initiation" icon="shield-check" href="/merchant/auth-capture/auth-payment-initiation">
    Start an authorization to hold funds on the customer's card.
  </Card>

  <Card title="Authorization Management" icon="shield-halved" href="/merchant/auth-capture/authorization-management">
    Capture funds or release the hold after authorization.
  </Card>
</CardGroup>