What is true about the payment processing of 'Authorize and Capture'?

The statement that funds are captured immediately upon order placement describes the 'Authorize and Capture' payment processing method accurately. In this model, as soon as the customer completes their order, the payment is not only authorized but also captured, meaning that the merchant has immediate access to the funds. This is beneficial because it streamlines the process by ensuring that the merchant can fulfill the order knowing that the payment has been successfully processed.

In contrast, other payment processing options, like authorization only, allow a hold on the funds but do not transfer them until a later stage, such as when the item ships or after invoicing, which is not applicable in the 'Authorize and Capture' scenario where immediate fund accessibility is the key feature. This differentiating factor makes 'Authorize and Capture' a preferred choice for many merchants who want a seamless payment experience right from order placement.