We are in a term where we have a lot of opportunities and success is dependent on our desire. Shelves of stores contain a lot of options for goods. We have a choice in selecting based on price, quality, and brand name or by just following our instincts and getting the package closest to us that appeals to us. We can choose in almost every aspect of our lives. Everything we do is based on choice. It means that buyers on online store want to be able to select their payment procedure. We all know there a lot of options, and one of them is card payment via the internet.

Listed below, we look at the concept of "authorize" and "authorize and capture" as two main payment methods, their differences and what actions can be performed through both procedures.

Authorize

In the “authorize” payment procedure, upon purchase, Jungle leavesthe funds are blocked in the bank account of the customer. This information is not displaying for the buyer, but he cannot apply this amount in other manipulations. After “authorize,” the money keeps in “pending production.” By doing this, the business owner can confirm that the buyer possesses enough funds to complete the transaction. The recipient can cancel the transaction, if needed, by utilizing “void” action. To carry out a transaction after the “authorize,” it is essential to make a “capture.”

There is, however, one disadvantage of the “authorize” method. It is made up of a time limit during which you can capture the payment. However, if there is a problem, solutions will be provided. One of them is setting a reminder.

Authorize and capture

When Another jungle leavesmaking use of the “authorize and capture” procedure, the money in the buyer’s account transfers quickly, and the “void” action cannot be executed (even in case of transmission only some part of the amount). In simpler terms, after the buyer has gone through all necessary steps have been completed, and the buyer has confirmed his purchase of the good, the business owner must give validation to verify that the order should be processed. Most times, this is an automatic process.

The speed of using this method is very satisfactory. It is a quick way of getting funds. However, such a case is prone to chargebacks, fraud and other types of challenges. Something may happen that would make the client want to return the goods. It may be due to a defective or broken product. So there is a “refund” feature to pay back the collected money.

In conclusion, the difference between “authorize” and “authorize and capture” exists in the manipulations. An “authorize” features an approval from the bank on the purchase while in “authorize and capture,” the approval comes after the funds have been transferred.

Additional information

As we know, the peculiarity of every internet business is in using systems that support online money transfers. Those systems serve as an electronic alternative to traditional methods of payment. And one of the best software platforms for those who run an internet business is Stripe. It is a combination of simple, flexible and powerful tools for e-commerce. Our module Stripe Payments can help you to accept card payments from the Stripe payment gateway directly at your Magento website.

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