What does a Setup Intents API allow you to do with a payment method?

The Setup Intents API in Stripe is specifically designed to enable merchants to set up a payment method for future payments without immediately charging the customer. This is particularly useful when you want to facilitate future transactions, such as subscriptions or one-time purchases that will occur at a later date. By using a Setup Intent, you can collect and store the payment method details securely, ensuring compliance with requirements for handling sensitive payment information.

When a Setup Intent is confirmed, it allows you to gather information about the customer's payment method and save it for future use. This ensures a smooth experience for both the merchant and the customer when subsequent transactions take place, as the customer won't have to re-enter their payment information each time. The focus of Setup Intents is on configuring payment methods for later use, rather than executing immediate charges, processing refunds, or tracking spending. This makes the ability to "set it up for future payments" the correct answer.