So in our app, we do not charge immediately but simply create stripe charge with capture set to false so that customer is not charged instantly.
Question: Should we still issue a Refund for the customer (in case of app/db error) despite the fact that we created a charge in un-captured mode ?
Thanks for the help
Ideally, yes, you should. "Refunding" an uncaptured charge will cancel the authorization and release the funds on the customer's account.
If you don't refund the uncaptured charge, the authorization will automatically expire after 7 days, but that's not very customer friendly. You should always try to either capture or refund uncaptured charges as soon as possible.