The PayPal payment workflow now uses an Authorization > Capture model, instead of the previous instant Capture.
This change is intended to eliminate avoidable conversion-related losses for customers.
Previously, we collected funds upfront and issued refunds for unfulfilled or adjusted orders directly to customers’ PayPal accounts. This created losses for customers because PayPal applies a higher conversion rate on payment and a lower rate on refund conversion.
Under the new logic, customers authorize payment at checkout.
This means that you allow us to charge up to the authorized amount.
– After a successful purchase, we capture only the actual amount required.
– Otherwise the authorization is declined, which means that you pay nothing for unsuccessful orders.
– If additional charges are required (for example, added domestic shipping), we will request a separate authorization for the additional amount.
We are continuing to improve to provide a more customer-friendly environment.
Thank you!
Lunarcat Company