Capture and release payment refers to whether you'd like to charge (capture) or not charge (release) the preauthorized charge on the booking.
What is pre-authorization?
A pre-authorized charge is a transaction occurring with the Credit Card institution, validating and reserving a booking amount, on the client’s Credit Card. No funds have been transferred, only reserved.
In another words, Credit Card institution will check availability of authorized amount in the customer's credit card. Then, a hold will be placed on the card for that amount for a particular tenure.
Fund are held for a maximum of 7 Days
Authorization expire automatically after 7 days.
What does capture & release means?
A captured charge is a transaction occurring with the Credit Card institution, in which funds are transferred from the institution to your Stripe account.
🔵 Capture: If you press capture, then PodiumIO will capture (i.e. charge) the preauthorized amount on the client's credit card
🔴 Release : If you press release, the preauthorized amount on the card will be cancelled and funds are transferred back to customer's credit card. After 7 days, non-captured funds are released automatically.
If you do not Capture or charge the customer within 7 days , Stripe will automatically release the pre-authorization. You can still charge the card after 7 days. The only difference is the funds are no longer being “reserved” in a hold for your business” For all recurring bookings you can also pre-authorize the card anytime before the service. Naturally we recommend you only do so within 7 days of the actual service being completed
You cannot capture more than the authorized amount.
If the amount is released, you can simply go back to the booking and charge the customer.
To summarize, here are the 3 scenarios -
Booking Amount Status
What you can do?
1. When the customer creates a booking
Booking amount is pre-authorized (checked for availability & reserved for you)
Money is still in customer's account
2. If the booking is charged within 7 days of pre-authorization
PodiumIO will display an option to capture the pre-authorized booking amount.
The Booking amount is reserved for you to capture.
Capture the pre-authorized amount
3. If the booking is charged after 7 days of pre-authorization
The pre-authorized booking amount is released (has expired)
Reserved funds are released back to the client's credit card.
Simply "charge customer using your PodiumIO account"