Collect payment only when items are shipped, not all at once at checkout.
Automatic payment capture by fulfillment
Shopify Plus now offers a new feature to automatically capture payments as each part of an order is fulfilled. With this feature, you can improve your financial reporting by recording revenue as it's earned. Plus, you can better meet customer expectations by collecting payment only when items are shipped, even partially, and not all at once at checkout.
This feature is only available on the Shopify Plus plan. When activated, the order payment is authorized at checkout. Payment is automatically captured for items and applicable taxes when they are fulfilled within the authorization period. Any remaining payment amount, such as shipping fees and duties, is automatically captured when the entire order is fulfilled within the authorization period.
Impact for the merchant: This new feature allows merchants to improve the accuracy of their financial reports and better manage their cash flow. By capturing payments as orders are fulfilled, merchants can record revenue more precisely and avoid complications related to returns or cancellations.
Impact for the customer/visitor: For customers, this feature means that payment is only collected when items are actually shipped, which can build trust and customer satisfaction. Customers no longer have to pay for items before they are fulfilled, which reduces concerns about delivery delays or order cancellations.
How to set up automatic payment capture by fulfillment
To set up automatic payment capture by fulfillment, follow these steps:
- From your Shopify admin, go to Settings > Payments.
- In the Payment capture section, click Manage.
- Select Automatically by fulfillment.
- Optional: Check Send warning 2 days before authorization expires to receive an email reminder.
- Click Save.
It is important to note that automatic payment capture by fulfillment has certain limitations and requirements:
- Payment can only be captured during the authorization period.
- Your payment provider must support authorization periods and multiple captures from one authorization.
- Automatic capture by fulfillment does not apply to orders created with "upon fulfillment" payment terms.
- The feature is not compatible with fulfillment apps that require a paid order status before beginning the fulfillment process.
