The practice of delaying payment capture by Amazon after an order is placed, but before shipment, is a common business strategy. This means the customer’s card isn’t debited the moment the “Buy Now” button is clicked. Instead, the authorization hold confirms funds availability, and the actual charge occurs later in the order fulfillment process.
This delayed charging offers several advantages. It allows for order modifications or cancellations before a transaction is finalized, reducing potential customer service issues and refund processing. It also accommodates situations where an item becomes unavailable, preventing unnecessary charges and the resulting negative customer experience. Furthermore, this approach aligns with industry best practices for managing transaction risks and maintaining customer trust. Historically, immediate charging for unshipped goods raised concerns regarding ethical business practices and consumer protection, leading to the adoption of delayed billing models by many online retailers.
