payments flow to support incremental authorization

[euluizaraujo]

Hello how are you? I would like to better understand how this new incremental payment functionality works and its applications. Could you help me with this question? @sai-harsha-vardhan

#3009

[sai-harsha-vardhan]

Hey @euluizaraujo
Incremental authorizations allows you to increase authorized amount for a payment before capturing it

• This is possible only for card payments and specific networks, with some criteria specific to connector
• Incremental Authorizations can be done multiple times and maximum attempts is again based on connector
• Total amount capturable would be sum of initial authorized amount and all the incremented additional amounts
• Incremental authorization is not possible if merchant and cardholder are in country with Strong Customer Authentication (SCA) requirements

The feature is not yet completely developed; we will be releasing docs once it's done. Thanks for your interest!

[euluizaraujo]

What would be the use cases for this functionality? I think this way the understanding would be clearer.

[sai-harsha-vardhan]

One of the usecase would be;
Traveling
When booking a hotel room, you can use incremental authorization if a traveler initially reserves a room for a certain number of nights but decides to extend their stay. In this case, an incremental authorization can be requested to cover the additional nights' charges.

[euluizaraujo]

@sai-harsha-vardhan today I have the following case: SaaS platform charges the customer monthly for the number of API requests, but this number is only closed at the end of the month, i.e., the customer registers a card with a small verification value (US$1) and the platform charges at the end of the month according to usage.

Would this scenario already be possible with the hyperswitch?

[euluizaraujo]

@sai-harsha-vardhan

[sai-harsha-vardhan]

Hey @euluizaraujo, This use case falls under Mandates, which allows you to save the customer's card with us and then charge monthly based on the billing cycle you have. You can find more details about Recurring Payments here -> https://hyperswitch.io/docs/features/mandates
Thank you, Hope this helps!