Authorization and honor period

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Last updated: May 14th, 10:06am

While the default for the checkout integration is a one-step payment solution, PayPal does support two-step payments. You can customize your integration so that you first authorize a card, then settle the purchase later. Settling a payment is also known as capturing the payment.

This topic describes the authorization and honor period that governs the two-step payment solution.

PayPal's authorization and honor period

An authorization places a hold on the funds and is valid for 29 days. After a successful authorization, PayPal recommends that you capture the funds within the three-day honor period. Success of the capture is subject to risk and availability of funds on the authorized funding instrument.

Within the 29-day authorization period, you can issue multiple re-authorizations after the honor period expires. A re-authorization generates a new authorization ID and restarts the honor period, and any subsequent capture should be performed on the new authorization ID. If you do a re-authorization on the 27th day of the authorization, you get only two days of honor period.

Capture details

  • For any payment type, you can capture less than or the full original authorized amount.
  • You can complete partial captures during a single authorization period. For PayPal payment authorizations, you must enable this feature on your PayPal account.
  • You can capture up to 115% of or $75 USD more than the original authorized amount, whichever is less.

Example scenarios

Within a 29-day authorization period, you can issue multiple reauthorizations after the initial three-day honor period expires.

Day Action Authorization period Honor period
1 Authorization-1 Begins 29-day authorization period Days 1 through 3
4 Reauthorization-1 on Authorization-1 Within 29-day authorization period Days 4 through 7
8 Reauthorization-2 on Authorization-1 Within 29-day authorization period Days 8 through 11

See also