🤫 Quick Tip:

This feature is currently open for early access! We need to configure your account (whether you are planning to use our test keys or live keys) before your developers can start testing and integration. Kindly message [email protected] to request for key configuration.

Definition of terms

Pre-authorization - the process by which a hold is placed on the customer’s credit card for a specified dollar amount based on a projected sale amount.

Authorization - the process by which the business owner confirms that the customer actually has funds available on their card to complete the transaction

Capture - the process by which a transaction moves out of the pending state and the business owner gets his or her money. The business owner must give the go signal to the transaction that they really want to process the payment.

Through our card authorization and capture feature, you can create a charge instantly, but capture funds later.

For instance, when a customer books a Grab Car, Grab places a hold on the customer's card when he or she books, but the customer is only fully charged when the trip is completed. Through this, Grab is able to verify first if the customer has available funds before proceeding with the trip. Likewise, if the Grab Ride is canceled, then the funds on hold are automatically refunded and the customer is not charged.

Most of our merchants who use this feature are:

  • Hotel and Resort merchants that hold the customer's payment upon check-in, but only capture the funds upon check-out

  • Food and delivery merchants that hold the customer's payment upon ordering but capture the funds upon stock verification and order pick-up.

  • Service providers that hold funds for a free trial period before charging the customer's account upon non-cancelation.

Upon authorization, we guarantee the money and hold the payment for up to 7 days. If the payment is not captured by this time, the authorization is canceled and funds are automatically released by PayMongo.

Pre-authorization or manual capture will allow you to manually capture funds at a later time, is a method to ensure that funds are available if you are not charging the customer at the same time via the PIPM workflow.

You need to update your APIs for this feature! Send over the dev docs to your developers to get started.

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