Rain-Managed

In the Rain-managed Settlement process, Rain finalizes authorized transactions and moves funds. Depending on the merchant’s request, settlements can capture the full authorized amount, a partial amount, or even exceed the authorization under certain conditions. In some cases, settlements may occur without prior authorization. Each flow determines how Rain releases authorization holds and updates balances. Once settlement is complete, Rain posts the transaction and sends a webhook to confirm the final amount.

Standard settlements

In a standard settlement, the merchant captures the full previously authorized amount. Rain then releases the authorization hold and transfers the funds. This is the most common settlement type used in retail transactions.

When Rain receives the settlement notification, it sends a transaction.completed webhook with the final amount.

Partial capture

In a partial capture, the merchant settles for less than the originally authorized amount. Rain releases the full authorization hold and transfers only the captured amount. This scenario is common in restaurants, where the final charge may be lower than the initial authorization after accounting for tips.

You will receive a transaction.completed webhook with the final amount.

Over capture

Only available to specific merchant categories:

Certain industries are allowed to settle for more than the authorized amount to accommodate tips and similar charges. See the permitted overcapture limits by MCC for specific MCC codes and their permitted overcapture limits.

In an over capture, the merchant attempts to settle for more than the authorized amount. Rain validates the request against network rules and merchant-specific thresholds and may approve or decline it accordingly. This is common in scenarios involving tips or additional surcharges.

You will receive a transaction.completed webhook with the total amount.

Multi capture

Rain supports multiple partial settlements against a single authorization. Rain maintains the full authorization hold until all captures are complete, similar to how it handles refunds and reversals. Once Rain processes all settlements, it releases the hold and posts the total settled amount. This approach is common in shipping scenarios where merchants fulfill items in separate shipments against one initial authorization.

Once the merchant settles the total amount, you will receive a transaction.completed webhook with the final amount.

Force capture

Only available to specific merchant categories:

In card-absent environments, up to a 15% increase between the authorized and settled amount is typically permitted. This buffer covers adjustments like shipping fees, taxes, or final service charges.

A force capture occurs when a merchant settles a transaction without prior authorization. These transactions bypass the authorization phase and proceed directly to settlement. Merchants typically use this in offline scenarios, such as in-flight purchases where the merchant isn’t connected to the internet.

Once the merchant posts the settlement, you will receive a transaction.completed webhook. These transactions are final.

Refunds

Rain processes refunds as negative transactions, and they may not reference the original charge. Rain validates each refund request and credits the amount to the cardholder’s account. Merchants can issue refunds anytime, even long after the original transaction settles.

Once the settlement is complete, Rain posts the refund on its ledger, and you will receive a transaction.completed webhook.