Capture (also called "payment capture" or "transaction capture") is the second step in the payment process, following authorization. When a merchant captures a transaction, they finalize the amount and submit it to their acquirer for settlement. This is when the actual transfer of funds is initiated.
There are two models for authorization and capture:
1. **Auth-Capture (simultaneous)**: Used in most retail environments. The transaction is authorized and captured at the same time in one step. This is what happens when you swipe your card at a grocery store.
2. **Auth-only then Capture later**: Used in environments where the final amount may differ from the initial authorization. Restaurants authorize at order time and capture after the final bill (including tip) is determined. Hotels authorize at check-in and capture at checkout. E-commerce businesses may authorize at purchase but capture when the item ships.
The capture amount can be less than or equal to the authorized amount. It should not exceed the authorized amount — doing so can trigger a decline or chargeback. If you need to capture more than authorized, you should re-authorize the additional amount.
Capture triggers settlement: once you capture, the transaction enters your batch and will be submitted to your acquirer during the next settlement run.
Merchants who separate authorization and capture need to be careful about: - **Time limits**: Authorizations expire after 7 days (Visa/Mastercard standard). If you don't capture within that window, you'll need a new authorization. - **Amount differences**: Capturing for less than authorized is fine; capturing for more can be declined. - **Restaurant tip adjustment**: Capturing the post-tip amount within 24 hours of the initial auth is essential to avoid interchange downgrades.
A restaurant flow: 1. Customer orders, waiter runs card at order time → Authorization for $65 (estimated total) 2. Customer signs receipt, adds $13 tip → Final amount: $78 3. Nightly batch run: Restaurant captures $78 (within 24 hours of auth) 4. Funds transfer at settlement → Restaurant receives $78 minus processing fees
The authorization will expire (typically after 7 days) and the hold will be released from the customer's card. No funds will be transferred. You'll need to re-authorize if you still want to collect payment.
Generally no — capturing more than the authorized amount can result in a decline or chargeback. For restaurants, there's a tolerance for tip adjustments (typically 20% over the authorized amount), but this varies by card network and processor.
Liberty Bancard's payment systems support both simultaneous and delayed capture workflows. If you're running a restaurant, hotel, or e-commerce store with complex authorization patterns, our team can configure your system to minimize downgrades and settlement delays.
Continue learning: Browse all 60 payment processing terms in our Payment Processing Glossary, or upload your statement for a free analysis of your current processing costs.