Delayed capture is a way of processing card payments in which authorisation and capture happen at different times. At checkout, the merchant obtains approval from the card issuer, which places an authorization hold on the cardholder's funds. Later, when the order is shipped, a hotel stay ends or the final amount is known, the merchant submits the transaction capture so that the payment is cleared and settled. This contrasts with immediate capture, where authorisation and capture occur together.
Delayed capture lets merchants charge only for what they deliver and adjust the amount using partial capture or, where permitted, incremental authorisation. If an order is cancelled, the merchant can release the hold instead of issuing a refund. Holds do not last indefinitely: each scheme sets an authorization expiry period, after which the merchant must re-authorise or risk a decline or chargeback.