What stage of processing is referred to as 'Capture'?

The 'Capture' stage in payment processing refers to the moment when a transaction is confirmed and can be billed to the customer. At this point, the transaction details have been finalized, and the necessary funds are set to be collected from the customer’s account. This stage is essential because it marks the transition from simply authorizing a transaction to securing the funds for the merchant. The capture usually occurs after the authorization is obtained, confirming that the payment information is valid and that the customer's account has sufficient funds to cover the purchase.

In the broader context of payment processing, it's important to clarify how this relates to the other stages. The approval stage, often associated with pre-authorization, is not the same as capture, since it does not guarantee the collection of funds. The final settlement stage encompasses the actual movement of funds between banks but occurs after capture. Meanwhile, the initial request for authorization precedes the capture stage, where basic verification of the transaction takes place. Understanding the nuances between these stages is critical for effective payment processing management.