What does separate authorization and capture mean?

What does separate authorization and capture mean?

• A. Authorize a card without charging immediately, hold up to 7 days before capture
• B. Always charge immediately
• C. You cannot authorize without capturing
• D. Authorization expires after 1 day

Answer: (A)

Separating authorization and capture means you first place a hold on the customer’s funds without actually charging them, and only later complete the charge. The authorization checks that the funds are available and reserves them for you, while the capture is when the money is actually moved and charged to the card. This is useful when you need to confirm details before finalizing payment, such as a hotel stay or a service with a variable final amount. In Stripe, an authorization typically lasts up to seven days; you must perform the capture within that window. If you wait too long and the authorization expires, you can’t capture the funds—you’d need to authorize again. You can capture all of the originally authorized amount, or a smaller amount if needed, within that window.

Separating authorization and capture means you first place a hold on the customer’s funds without actually charging them, and only later complete the charge. The authorization checks that the funds are available and reserves them for you, while the capture is when the money is actually moved and charged to the card.

This is useful when you need to confirm details before finalizing payment, such as a hotel stay or a service with a variable final amount. In Stripe, an authorization typically lasts up to seven days; you must perform the capture within that window. If you wait too long and the authorization expires, you can’t capture the funds—you’d need to authorize again. You can capture all of the originally authorized amount, or a smaller amount if needed, within that window.