What is the difference between authorization and capture?

Authorization asks the issuing bank to approve the amount and places a hold on the cardholder's credit. Capture claims that amount so it can settle and be funded. A transaction can be authorized and never captured.

Why does it take days to receive my money?

Captured transactions are batched and cleared through the card networks before the processor deposits funds. That clearing and funding cycle typically takes a few business days.

What are interchange fees?

Interchange is the portion of processing cost paid to the card-issuing bank, set by the card networks. It varies by card type and how the transaction is presented, which is why rewards cards cost more to accept.

Why was my customer's card declined?

Declines are decided by the issuing bank. Common reasons include insufficient funds, an expired card, an address or security code mismatch, or an issuer fraud rule. The customer should use another card or contact their bank.

How do I avoid chargebacks?

Use a recognizable billing descriptor, confirm and track every shipment, respond to customers quickly, and refund legitimate requests promptly. Most chargebacks begin as unanswered customer questions.

Can I test payments before going live?

Yes. A sandbox environment lets you run authorizations, captures, and refunds without moving real money, and a self-test in the dashboard verifies your configuration end to end.

How Payment Processing Works on Nexa

Payment processing is the least visible and most consequential part of selling online. A shopper sees a button; behind it, six parties coordinate in about two seconds to decide whether money will move. This page explains that sequence, what it costs, why some funds take days to land, and how refunds, disputes, and recurring charges work on Nexa.

Key takeaways

Authorization checks the card; capture is what actually claims the money.
Settlement batches captured transactions; funding deposits them to your bank.
Interchange, set by the card networks, drives most of the cost.
Refunds reverse a transaction; chargebacks are a dispute with deadlines.
Recurring billing charges on schedule using gateway transaction references.

Who is involved in a card payment

Cardholder: The shopper paying for the order.
Issuing bank: The bank that issued the shopper's card and decides whether to approve the transaction.
Card network: Visa, Mastercard, American Express, or Discover, which route the transaction and set interchange rates.
Payment gateway: The service that securely receives card details and transmits them for authorization. On Nexa, the gateway is where card data lives, not the marketplace application.
Processor and acquirer: The parties that move the transaction through the networks and ultimately deposit funds into the merchant's bank account.
Merchant: The seller whose merchant account the transaction runs through.

The lifecycle of a transaction

CollectionCard details are entered at checkout and transmitted over an encrypted connection to the gateway. The marketplace does not store the full card number.
AuthorizationThe issuing bank checks the card, available funds, and fraud signals, then approves or declines. An approval places a hold on the cardholder's available credit; it does not yet move money.
CaptureCapture claims the authorized amount. It can happen immediately at purchase or later when the order ships, depending on how the seller configures it.
SettlementCaptured transactions are batched, usually daily, and submitted for clearing through the networks.
FundingThe net amount for the batch, after processing costs, is deposited into the merchant's bank account on the processor's schedule.
Post-transaction eventsRefunds, partial refunds, voids before settlement, and disputes are all handled against the original transaction reference.

Where the cost comes from

Processing cost is not a single fee. It is a stack, and knowing the layers explains why the same product can cost different amounts to sell depending on how the customer pays.

Interchange: paid to the issuing bank and set by the card networks. Rewards and corporate cards carry higher interchange than basic debit cards.
Network assessments: smaller fixed fees the card networks charge on volume.
Processing margin: what the processor charges to provide the service, gateway, and support.
Incidental fees: chargeback handling, retrievals, and monthly account costs where applicable.

Card-not-present transactions — which is what online commerce is — carry higher interchange than card-present ones, because the risk of fraud is higher when the card is not physically read. Submitting complete transaction data, including full billing address and verification values, helps transactions qualify at better rates and reduces fraud losses.

Declines and what they mean

A decline is a decision by the issuing bank, not by Nexa. Common causes are insufficient funds, an expired card, an address or verification mismatch, a card issuer fraud rule, or a spending limit. The right response for a seller is usually to invite the shopper to try another card or contact their bank; retrying the same card repeatedly can itself trigger further declines.

Refunds, voids, and partial refunds

If a transaction has not yet settled, it can be voided, which cancels it cleanly. Once settled, the correct action is a refund, which sends money back through the same path. Partial refunds are supported for order adjustments. Refunds typically appear on the cardholder's statement within a few business days, depending on their bank, and any reward accrual associated with the original order is adjusted automatically.

Chargebacks and disputes

A chargeback is the cardholder disputing a charge with their bank rather than with the seller. It carries a deadline, a required evidence package, and a cost regardless of the outcome. The practical strategy is prevention first and thorough response second.

Use a billing descriptor customers will recognize on a statement.
Send order confirmations and shipping notifications so purchases are never a surprise.
Keep tracking numbers, delivery confirmations, and communication records.
Answer refund requests quickly; a refund costs less than a dispute.
When a dispute arrives, submit the specific evidence the case type requests before the deadline.

Recurring and scheduled payments

Subscriptions and repeat charges are run against the gateway's stored transaction reference rather than by re-submitting card data from the platform. Scheduled charges generate invoices automatically, and failed renewals surface for follow-up so revenue is not silently lost.

Testing before going live

Before real cards are accepted, processing can be exercised in a sandbox environment where transactions behave like live ones without moving money. A self-test in the seller dashboard confirms the whole path — authorization, capture, refund — is configured correctly. Going live is a deliberate step, made only after the sandbox path passes and live credentials are in place.

Frequently asked questions

Short, direct answers to the questions people most often ask about this topic.

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