When a customer clicks “Pay Now” on your WooCommerce checkout, a complex sequence of events happens in under two seconds. Understanding this flow helps you make better decisions about payment infrastructure, debug problems when they occur, and understand why the fees look the way they do.
The Four Stages of Payment Processing
Stage 1: Authorization (Under 2 Seconds)
The customer enters their card details and clicks pay. Here’s what happens immediately:
- Your payment gateway/processor encrypts the card data and sends an authorization request to the card network (Visa or Mastercard)
- The card network routes the request to the customer’s issuing bank (the bank that issued the card)
- The issuing bank checks: Is the card valid? Is there sufficient credit/funds? Does this transaction look like fraud? Are there any velocity limits triggered?
- The issuing bank returns an approval or decline code (with reason) through the card network back to your processor
- Your processor returns the result to your WooCommerce checkout — in under 2 seconds
At this point, no money has moved. The authorization simply places a hold on the customer’s funds equal to the transaction amount. The customer’s bank has committed to pay if the transaction clears.
Stage 2: Capture
For most ecommerce transactions, capture happens immediately after authorization — the two steps are combined. For some businesses (hotels, car rentals, B2B), authorization and capture are separated: you authorize at booking and capture when the service is delivered. WooCommerce handles capture timing through your payment gateway plugin settings.
Stage 3: Clearing (Day 1)
At the end of the processing day, your payment processor batches all captured transactions and submits them to the card networks for clearing. The networks route each transaction to the issuing bank, which releases the held funds. The issuing bank bills the cardholder on their next statement.
Stage 4: Settlement (T+1 to T+2)
One to two business days after clearing, the issuing bank transfers funds through the card network to your acquiring bank. Your acquirer deducts their fees and deposits the net amount into your business bank account. This is the settlement you see in your payment dashboard.
The Full Timeline
| Stage | When | What Happens |
|---|---|---|
| Authorization | Seconds | Bank approves; funds held |
| Capture | Immediately (ecommerce) or deferred | Transaction confirmed for settlement |
| Clearing | End of processing day | Batched transactions submitted to networks |
| Settlement | T+1 to T+2 business days | Funds deposited to your bank account (net of fees) |
Why Authorization Rate Matters
Not every authorization request results in approval. Banks decline transactions for many reasons: suspected fraud, insufficient funds, card limits, or technical errors. Your authorization rate, the percentage of attempted transactions that are approved, directly determines your revenue. Every declined legitimate transaction is lost revenue. ConvesioPay’s Adyen-powered infrastructure maximizes authorization rates through direct acquiring relationships and network tokenization.
ConvesioPay’s Role in This Flow
ConvesioPay handles the gateway, processing, and acquiring layers, through the Adyen infrastructure — in a single integration. One plugin, one dashboard, one settlement. Flat rate: 2.9% + $0.30, no monthly fees.
Ready to get started? Learn more about ConvesioPay or view pricing.