I'm confused because my customer made a purchase but it was declined due to insufficient funds even though they told me they were charged. Would the reason this happened be because I have to manually capture the payment ? I changed to this to avoid charge backs and thus not hopefully not have my funds held.
When operating a store, you can choose one of two methods to capture payment:
If your customer attempted to pay for the order but received "insufficient funds" as the error code, but they see the amount appear on their card, then this would be an "authorization" and not a charge. Authorizations will drop off their card within three business days. They would need to use a card that has sufficient funds to place an order with your store. Until then, an order should not appear in your "orders" section.
Do you see this customers order appear in the "Orders" section, or the "Abandon cart" section of your admin?