In the context of payment processing, "capture" refers to the process of finalizing a transaction after authorization has been obtained. When a customer makes a purchase, the payment processor first authorizes the transaction to confirm that the funds are available on the cardholder's account. Once the authorization is confirmed, the capture process completes the transaction by transferring the authorized funds from the customer’s account to the merchant’s account. Captures can occur immediately after authorization or may be delayed depending on the merchant's policies, particularly in scenarios like online bookings where the actual transaction amount may need to be finalized later.
The capture process is essential for ensuring that funds are securely transferred to merchants, with approximately 80% of online transactions involving separate authorization and capture steps. In many cases, merchants have a specific timeframe (usually 1-7 days) within which they must capture the funds after authorization, or the authorization will expire, and they will need to seek reauthorization. Example: An online retailer that captures funds immediately after authorization can manage cash flow more effectively, ensuring that inventory is allocated and orders are fulfilled promptly. Insight: Research indicates that merchants who implement a robust capture process see a 25% reduction in transaction disputes and chargebacks, as the proper capture ensures that the amount billed aligns with the transaction.
Swipesum helps businesses optimize their payment capture processes, ensuring that transactions are completed accurately and efficiently. Our team provides guidance on best practices for capture timing and amounts, minimizing the risk of expired authorizations and enhancing cash flow management. With Swipesum’s expertise, you can streamline your payment processes, reduce disputes, and ensure that your business operates smoothly in the payment landscape.
