Shopify provides flexibility in how payments are captured, offering options that can be tailored to suit different business models. Understanding and configuring your payment capture settings can help improve cash flow management and align with your operational processes.

 

Automatic Payment Capture at Checkout

 

• Default Setting: Automatically captures payment at the time of sale for credit card payments and some additional payment methods as soon as the provider completes processing.
• Benefits: Saves time by eliminating the need to manually capture payments for each order. Ideal for merchants who fulfill orders promptly after purchase.

 

Automatic Payment Capture at Fulfillment

• Option for Entire Order Fulfillment: Payment is authorized at checkout and automatically captured when the entire order is fulfilled, within the authorization period.
• Suitable For: Merchants who want to ensure payment is captured only when they're ready to ship or provide the service, aligning payment capture with their fulfillment process.

Automatic Payment Capture per Fulfillment (Shopify Plus Only)

• Partial Fulfillments: Payment is authorized at checkout and captured automatically as items within the order are fulfilled.
• Considerations: Not all payment methods support capturing multiple partial payments. Ensure your payment provider supports this functionality if it's crucial to your business model.

Manual Payment Capture

• Control Over Payment Processing: Offers the highest level of control, requiring merchants to manually approve payment for each order.
• Use Cases: Useful for reviewing fraud analysis before capturing payment, adhering to specific accounting standards, or complying with local regulations that require payment upon delivery.

 

Setting Up Payment Capture

1. "Navigate to Settings > Payments" in your Shopify admin.

2. "Adjust Payment Capture Settings": Select your preferred method (automatic at checkout, automatic at fulfillment, or manual) and save your changes.

3. "Optional Notifications": For manual capture, especially with Shopify Payments, you can opt to receive email warnings before authorizations expire, ensuring you capture payments within the authorization period.

 

Credit Card Authorization Period

 

• The authorization period is the window during which a payment must be captured after a credit card is authorized. Failing to capture the payment within this period can result in the inability to collect funds.
• Shopify Payments Authorization Period: Typically 7 days, with extended periods available for Shopify Plus merchants using specific credit cards.

Best Practices for Payment Capture

• Choose a Method That Aligns With Your Business: Consider your fulfillment process, cash flow needs, and customer service policies when selecting a payment capture method.
• Monitor Authorization Periods: Especially important for manual capture settings, to ensure payments are captured in time.
• Understand Your Payment Provider's Capabilities: Not all third-party providers support multiple captures or extended authorization periods.

By carefully selecting and managing your payment capture settings, you can optimize the checkout process for your Shopify store, ensuring it supports both your operational needs and provides a smooth experience for your customers.