Capture

Capture, or payment capture, refers to the process of transferring funds between a cardholder’s account and a merchant’s account after a transaction has been authorized and authenticated. For card-present transactions, capture occurs immediately after authorization. Meanwhile, payment capture may take up to 1 to 3 days to occur after a card-not-present transaction has been authorized.

During the capture process, the merchant’s acquiring bank requests funds from the cardholder's issuing bank and deposits them into the merchant’s account. This is when both parties involved in a transaction receive their respective funds.

This process is crucial for businesses to maintain healthy cash flow. Delayed or incorrect captures can result in issues such as chargebacks, which can be costly and damaging to a business’s reputation. 

Additionally, capturing payments promptly also helps with accurate record-keeping and reconciliation of transactions. It allows merchants to track sales and monitor inventory levels, which is essential for managing business operations effectively.