Instant payments through debit cards and credit cards are great because they speed up the speed of doing business. They help businesses to accept payments from all over the world through an online gateway. However, instant payments are not always ideal. Enter delayed capture for credit card payments.
Delayed capture is a feature in debit and credit card payments you as the merchant authorizes a payment from the client’s card but only complete the transaction later. This could be after a few seconds, minutes, or days. During this delay period, the money is held by the card issuer so that the cardholder cannot spend it. It appears as a pending payment on their end. The merchant can complete or cancel the transaction altogether later. There is normally an expiry period, which if it passes, the money reverts to the customer’s available balance and the merchant cannot claim it.
The delayed capture method of completing card payments serves several reasons.
First, in situations where the businesses face the risk of accepting payments from suspicious cards, the delay period gives ample time to verify. For instance, the business can check customer details against the card details. Further, by holding the money from the client’s account for some time, the business minimizes the risk of chargebacks from scammers.
If you are in a business where inventory control is an issue, delayed capture can provide you time to check whether you can fulfill orders before accepting payments. This way, you’ll avoid unnecessary charges you would otherwise incur in initiating refunds to customers. Customers will be happy to know that they won’t be charged unless an order is due for processing.
Numerous businesses can benefit from delayed capture. A business that provides technical services such as plumbing or lawn mowing services can authorize card payments before dispatching someone to the client’s home. This eliminates the possibility of disagreements over payments after the business has already performed the services. Hotels too can do this when clients are checking in to make sure that clients’ cards have sufficient funds. They can complete payments when the clients are checking out.
If you run an online business with or without a website, you can benefit from delayed capture in the processing of your payments. Businesses that incur heavy chargeback fees and even risk being blacklisted by payment gateway providers need to implement it for better screening of customers.
PayRequest can provide a single payment solution for your company to accept payments from multiple gateways including Mollie, Stripe, PayPal, and more. If you need to pre-authorize links from your customers, you can easily send them pre-authorization payment links and capture the money at the appropriate time. We make it easy to track all your payments from an interactive dashboard. Visit our website to learn more about managing delayed capture of credit cards and other services from PayRequest.
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