Picture of Approval-Based Payment Flow

Approval-Based Payment Flow

In this video, I explain the new approval-based payment flow, released in January 2025. This system allows team storefronts to authorize payments without immediately capturing funds, providing a buffer period to verify orders. I walk through the setup process using authorize.net and highlight the importance of enabling the approval workflow.

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0:00 Okay, so in this video we're going to be talking about an approval-based payment flow. This functionality is released in January 2025. So let's start off with what exactly does it do. 0:13 So traditionally, online stores immediately capture payments when an order is placed. With this approval-based payment flow, you authorize a customer's card within outdrawing the funds straight away. 0:27 So the order enters an authorized or a pending payment state and that is awaiting approval by those designated team members who have that approval or approver role. 0:40 Now, during that window between it being approved, the team members can review the order details, they can update the state line item quantities, they can cancel lines or the entire order, or they can reject the order entirely if it's necessary to do so. 0:55 Once the team then approves the order, the system captures the payment for the exact authorized amount. Unless you brought the total down to zero, in which case the authorization is voided and the order is simply marked as paid. If you also try to increase your, the total above what was originally authorized 1:14 , you'll see a warning, capturing more than that authorized amount isn't yet supported. Although at the time of recording this tutorial, a future reauthorization feature is being planned. 1:27 So this approach is essentially help, especially helpful for companies that want a buffer period to verify or to finalize orders. 1:34 Before they financially commit to it. If a mistake is found, like a pricing error, or a request to add or remove items, you can handle it without having to refund or juggle partial captures. 1:50 Okay, so actually setting this up is a fairly straightforward process. So what we actually need to do is to install and configure a payment method, which sort of supports authorize only. 2:01 Now one of these, which is very commonly used, is authorize.net. So if I go to my payment method screen, locate the relevant entry within here, which in my case is authorize.net, go ahead and configure. Now you'll need the account set up and linked. But the important thing for activating this particular 2:25 bit of functionality is to change this capture mode. Now what you'll find it's on by default is normally on order placement. 2:33 So the capture is taken and completed when the order is placed. What we want to change that to is this new option here, which is on order placement slash approval. 2:45 So, if the approval process is complete, ...is active, then that will be prioritised. So it means that approval has to be done before the capture is taken. 2:59 Okay, in addition to this, you need to actually have the approval workflow, ,sorted as well and active as well. So, I'm not going to go through any detail on the approval workflow in this particular case. 3:11 In this tutorial, there is a whole other series of tutorials on the Infigo Academy which talk about the approval workflow, how to activate it, and what exactly you can use from it. 3:21 All I'm going to say here is the workflow needs to be enabled, and then further down this page as well, you'll find that there's this option here, which is recalculate order totals on quantity change or cancel. 3:33 Now, you want to enable this if you want the order total to be recalculated automatically when you change quantities or cancel lines. 3:43 If it's disabled, recalculations might simply be logged without updating the final amount. So if you want to make full use of this functionality, you're probably going to want that setting to be turned on. 3:54 what I'm going to do is impersonate a customer on here, place an order as them, and their orders will need approval by some other customer that's registered in the system. 4:12 payment step, I'm going to utilize the option which, calls on the authorize.net plugin that we configured. so from a customer perspective, an end user of our straw front, that order has now gone through. 4:30 It's saying payment was authorized. However, it's also saying that some of our items do require approval. If we then look at that order in more detail, still on the customer's account, we can see that information tracks, so awaiting approval. 4:45 Now, if I go and have a look at one of my administrator accounts, and go and have a look at our sales section, and have a look at our orders, we can see that that order has come through with an authorized status, so not paid so far. 5:00 The payment hasn't been taken. It has just been authorized. If I view that particular job, we see we've got some additional information related to it up here to do with automatically updating line items and quantities if things are updated. 5:14 And then the easiest way to see what's been done is to go on the order notes. So we can see that authorized.net has been activated, but it is just authorized. 5:24 It's authorizing the payment so far. It hasn't actually been taken yet. Now, so I'm going to go and impersonate another one of my users who is the approver for that particular customer. 5:40 Go to their approvals page. And then I could either make changes to that order on the page as you've seen, or I could just go ahead and approve. 5:59 What we then see if we go back to sales is that that order has now been paid. 6:18 So because that approval process has happened, the capture has now been taken. And if I go and view more details on that particular order, go to my order notes, we can see that when I actually completed that approval, the order has been marked as paid automatically. 6:36 We've captured paid. Payments based on the updated details of the order, if anything has changed, and then we have our updated status.

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Additional Information

What Does It Do?

Traditionally, online stores immediately capture payment when an order is placed. With Approval-Based Payment Flow, you authorize a customer’s card without drawing the funds right away. The order enters an “Authorized” payment status, awaiting approval by designated team members. During this window, you can:

  • Review the order details
  • Update line-item quantities
  • Cancel lines or the entire order
  • Reject the order entirely if needed

Once your team approves the order, the system captures the payment for the exact authorized amount—unless you’ve brought the total down to zero, in which case the authorization is voided and the order is simply marked as paid. If you try to increase the total above what was originally authorized, you’ll see a warning: capturing more than the authorized amount isn’t supported yet (a future “re-authorization” feature is planned).

This approach is especially helpful for companies that want a buffer period to verify or finalize orders before financially committing. If a mistake is found—like a pricing error, or a request to add or remove items—you can handle it without having to refund or juggle partial captures.


How to Set It Up

  1. Install & Configure a Payment Method Supporting Authorize Only

    • Go to your AdminConfigurationPayment Methods.
    • Install or enable a payment plugin such as Authorize.Net, making sure it’s set to the capture mode to "on order placement / approval" rather than other immediate capture options.
  2. Enable the Approval Workflow

    • In the Admin panel, locate your Approval Workflow Settings.
    • Turn it on either globally (for all products) or individually (per product/category).
    • This ensures new orders will enter an “Authorized” payment status, pending approval.
  3. Optional: Adjust Recalculation Settings

    • Still on the Approval Workflow Settings page, consider activing the ":" setting.
    • Enable it if you want the order total to be recalculated automatically when you change quantities or cancel lines. If disabled, recalculations might simply be logged without updating the final amount.
  4. Configure Any Shipping or Extra Settings

    • If you use shipping services (e.g., EasyPost), ensure your shipping plugins are also properly set up.
    • Note that certain extras like gift cards, discounts, or reward points may not recalculate under this new workflow. Be mindful if you rely on those features.

How It Works in Practice

  1. Customer Places an Order

    • They add items to their cart and checkout as usual.
    • The payment status becomes “Authorized”—the card is authorized for the order amount, but not fully charged.
  2. Admin/Approver Reviews the Order

    • Log in as a user designated an Approver for the user placing the order.
    • Navigate to the Orders page to view and amend the current order.
    • Update item quantities if needed or cancel lines.
    • If the total quantity goes up beyond the original authorized amount, you’ll see a warning that you can’t capture more than authorized.
    • If a line is canceled and the new total is zero, the authorization will be voided once approved.
  3. Approval or Rejection

    • Approve the order to finalize it: Payment is captured immediately for the authorized total. If that total is zero, the order is marked as paid via a voided authorization.
    • Reject the order (or all line items): The authorization is canceled, and the order will not be paid or processed further.
  4. Post-Approval

    • Once approved and captured, the order status typically moves to “Paid” or “Processing,” and your usual production or fulfillment workflows begin.
    • If you canceled all order lines, there’s no capture step—because the order is essentially void.

Important Notes & Limitations

  • Cannot Capture More Than Authorized: If you increase the order total past the original authorization, you can’t capture the new, higher total automatically. A follow-up feature (“re-authorization”) is planned.
  • Zero-Amount Orders: If changes or discounts reduce the total to zero, the authorization will be voided, and the system marks the order as “Paid.”
  • Non-Recalculating Items: Certain line items—like gift cards, reward points, shipping fees, or discounts—may not update if the discount or voucher is removed. Expect the final total to reflect only the recalculated item base prices.
  • No Recalculation After Payment: If an order is fully paid (rather than just authorized), you can’t recalculate or change it. The system logs any attempt, but won’t adjust totals.
  • Integration Considerations: If you use one of our Connect MIS integrations, please be mindful that additional testing may be required.
Alternate Search Terms

Individual Search Words
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Alternate Search Phrases
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