2006

Authorization & Capture Integration Guide June 2006 15
1
Overview
PayPal Authorization & Capture is a settlement solution that provides merchants increased
flexibility in obtaining payments from their buyers. During a traditional sale at PayPal, the
authorization and capture action is completed simultaneously. PayPal Authorization &
Capture separates the authorization of payment from the capture of the authorized payment.
Authorization & Capture is for merchants who have a delayed order fulfillment process and
who typically make a $1 auth at checkout. It enables merchants to modify the original
authorization amount due to order changes occurring after the initial order is placed (such as
taxes, shipping, or item availability). This manual discusses the authorization and capture
process and provides steps to help you authorize, capture, reauthorize, and void funds.
Types of Authorizations
You can make two types of authorizations:
z Basic authorizations
z Orders and order authorizations
Basic Authorizations and Orders: a Comparison
1. Both allow a delayed capture of funds and voids.
2. Both have an honor period and an authorization period, as described in “Honor Period and
Authorization Period” on page 16.
3. Both types of authorizations have a similar life cycle, as shown in Figure 1.1, “High-Level
Diagram of Authorization & Capture” on page 17, which illustrates the life cycle of the
authorization period and the general processes for using Authorization & Capture.
4. A capture can have an associated invoice number.
Differences Between Basic Authorizations and Orders
The primary distinctions between basic and order are as follows:
1. An order is equivalent to a $1 authorization at checkout. The order itself does not place the
PayPal member’s balance on hold (as does a basic authorization). An order can be captured
directly without an additional authorization, or it can be followed by an additional order
authorization that changes the amount to capture, which you make with the
DoAuthorization API.