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How Credit-Card Debits, Captures & Settlements Actually Work

Every card transaction goes through multiple debit stages: authorization, capture, settlement, and sometimes reversal. This page explains what each step means and how it affects both consumers and merchants.

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What Is a Debit in the Card-Network Sense?

In the card-network ecosystem, a “debit” is not the same as a debit-card transaction. A debit refers to the **final settlement** of money moving from the issuer (your bank) to the merchant’s acquirer after a purchase is fully confirmed.

Every card purchase goes through several stages — the “debit” is the moment the issuer releases funds.

The Full Debit Flow: From Tap to Settlement

When you tap, swipe or use a virtual card, the terminal sends an **authorization request**. If approved, the merchant receives a temporary hold. A debit only occurs after a **capture**, when the merchant finalizes the amount.

Stage What Happens Why It Matters
Authorization Issuer verifies funds, places a hold Not a debit yet — amount can still change
Capture Merchant confirms the final amount A hold becomes a real transaction
Settlement (Debit) Funds move between issuer → network → acquirer This is the actual “debit”
Posting Transaction appears on your statement Now part of your balance

Refunds, Reversals & Failed Debits

A debit can be reversed if the merchant cancels a capture, if a refund is issued, or if the issuer determines that the capture was invalid. Refunds return funds after settlement; reversals cancel a transaction before it settles.

Card networks allow partial refunds, voids, late-presented captures and merchant-error corrections.

Explore Related Payment Mechanics

Part of The CreditCard Collection

Debits.Creditcard is one page in The CreditCard Collection — a network of educational microsites by ronarn AS. Each site explains a single card concept clearly and neutrally.

Ready to Understand More Card Mechanics?

Use this minisite to understand debit flows — then explore the network to learn how credits, protections, FX fees and reward structures work.

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