Acquiring
How Can Using Auth and Capture Prevent Fraud?
Using auth-and-capture with review rules to prevent fraud by releasing suspicious transactions before capture.
Auth and Capture with review rules serves as a fraud prevention mechanism because issuers must report fraud on all captured payments, regardless of subsequent refunds.
The process works as follows: merchants can authorize payments and then review them before capture. Those transactions believed to be suspicious can be released without being captured. Since uncaptured payments are never processed, issuers cannot file fraud reports on them.
This approach allows merchants to maintain tighter control over transaction processing and reduce fraudulent chargebacks by preventing questionable transactions from reaching the capture stage.