Integration Guide

Website Payments Standard Integration Guide September 2008 321
8
Using Authorization & Capture
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 USD authorization 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 chapter discusses the authorization and
capture process and provides steps to help you authorize, capture, reauthorize, and void funds.
There are two ways to use Authorization & Capture:
z Create an order or authorization with Website Payments Standard HTML and capture or
void the authorization on the PayPal website (www.paypal.com
).
z Use the Authorization & Capture API, which is not discussed in this book. For more
information, see the Website Payments Pro Integration Guide
.
Basic Authorization Process
Authorization & Capture starts when your buyer authorizes a payment amount during
checkout.
1. For example, you can send your buyer through the Website Payments payment flow,
passing in the paymentaction variable set to authorization or order.
2. After your buyer completes checkout, you can then use the payment’s transaction ID with
Authorization & Capture in the PayPal website (
https://www.paypal.com). You can:
– Capture either a partial amount or the full authorization amount.
– Authorize a higher amount, up to 115% of the originally authorized amount (not to
exceed an increase of $75 USD).
– Void a previous authorization.
Honor Period and Authorization Period
When your buyer approves an authorization, the buyer’s balance can be placed on hold for a
29-day period to ensure the availability of the authorization amount for capture. You can
reauthorize a transaction only once, up to 115% of the originally authorized amount (not to
exceed an increase of $75 USD).