Ecommerce · Website glossary

Payment authorization

Quick answer · What is Payment authorization?

A payment-processing step that checks and, for supported payment flows, reserves an amount for a potential later capture.

IN PRACTICE

Payment authorization: an example

A card transaction is authorized before the merchant captures the amount under its workflow.

KEEP IN MIND

An authorization is not the same as a settled payment; follow the processor's actual states and timing.

Put the idea to work

Frequently asked questions

What is a practical example of Payment authorization?

A card transaction is authorized before the merchant captures the amount under its workflow.

Is a payment authorization the same as a settled payment?

An authorization is not the same as a settled payment; follow the processor's actual states and timing.

Which concepts should I read alongside Payment authorization?

Payment capture: The step that requests collection of a previously authorized payment amount in a supported payment flow.
Order status: A label representing an order's current stage in a store's processing workflow.