PayPal allows you to either charge your customers immediately on checkout or to pre-authorize the payment and charge the funds later.
You can choose this setting from the General options page in YITH > PayPal Payments for WooCommerce > Settings > Payment action.
Select Sale if you want that the funds are immediately transferred from the customer to the merchant account.
Select Authorize and capture if you want to authorize the payment first and charge your users at a later time. How does this work exactly?
Whenever your users place an order, it will be recorded with the status PayPal payment authorized.
When you’re ready to charge the funds, you can open the order page and set the order status to either Processing or Completed and the transaction will go through.
The amount agreed in checkout will be guaranteed for 3 days, but the authorization expires in 30 days, after which you will no longer be able to charge the user from this order, they will have to place a new one.
The order will appear as an Authorization both in the customer’s and merchant’s accounts, until it is completed.
The merchant will be able to capture the authorized payment also from the PayPal account > Activities as shown in the screenshot above.