Credit Card two-step payments allow a merchant to first authorize a transaction and reserve the amount on the customer’s card, and later perform a separate capture operation to settle the funds.

In a two-step scenario, authorization and capture are independent operations. The customer approves the transaction during checkout, but the merchant controls when the funds are captured within the authorization validity period.

This model is commonly used in industries where fulfillment or service confirmation occurs after checkout.

How It Works

In a typical Credit Card two-step payment flow:

1. The merchant initiates an authorization request through the SIBS Payment Gateway.
2. The customer provides card details through a secure payment form or hosted page.
3. The transaction is sent to the acquiring network for authorization.
4. Strong Customer Authentication (e.g., 3D Secure) is applied when required.
5. Upon successful authorization, the amount is reserved on the card.
6. The merchant receives the authorization result and stores the transaction reference.
7. At a later moment, the merchant initiates a capture request referencing the authorized transaction.
8. The funds are captured and the transaction is finalized.

The customer interaction occurs only during the authorization phase. The capture phase is merchant-initiated and does not require further customer interaction.

Workflow Characteristics

The Credit Card two-step flow has the following characteristics:

• Real-time authorization response
• Funds reservation (not immediate settlement)
• Separate capture operation
• Authorization validity period
• Optional partial capture (if supported and configured)
• Automatic release of funds if authorization expires

If capture is not executed within the authorization validity window, the reserved amount is automatically released by the issuing bank.

Transaction Lifecycle

The lifecycle of a Credit Card two-step payment typically includes:

• Payment creation (authorization request)
• Authentication (if required)
• Authorized (funds reserved)
• Captured (successful settlement)
• Expired (if not captured in time)
• Declined or failed (if authorization is not approved)

The transaction is considered fully settled only after capture is successfully completed.

Use Cases

Credit Card two-step payments are commonly used in:

• Hotel and hospitality bookings
• Car rentals
• Travel and ticket reservations
• E-commerce with delayed shipment
• Orders requiring manual validation
• High-value transactions requiring additional controls

This payment model is particularly suited for environments where:

• The final charge amount may change before fulfillment
• Delivery or service confirmation is required
• Immediate settlement is not appropriate
• Refund avoidance is preferred through delayed capture

Integration Context

Within the SIBS Payment Gateway, Credit Card two-step payments require:

• An initial authorization request
• Storage of the authorization transaction reference
• A separate server-to-server capture request

The capture operation must reference the original authorized transaction.

Merchants must implement logic to:

• Track authorization status
• Execute capture within the allowed validity period
• Handle expired authorizations
• Manage partial or full capture rules (if applicable)
• Prevent duplicate capture attempts

The following sections describe the technical integration flow, authentication handling, capture execution, and post-authorization management for Credit Card two-step payments.