diff --git a/engines/order_management/app/services/order_management/order/updater.rb b/engines/order_management/app/services/order_management/order/updater.rb
index e700cf111f..684ca7b9ac 100644
--- a/engines/order_management/app/services/order_management/order/updater.rb
+++ b/engines/order_management/app/services/order_management/order/updater.rb
@@ -172,6 +172,8 @@ module OrderManagement
           'failed'
         elsif canceled_and_not_paid_for?
           'void'
+        elsif requires_authorization?
+          'requires_authorization'
         else
           infer_payment_state_from_balance
         end
@@ -220,6 +222,10 @@ module OrderManagement
 
         order.create_tax_charge!
       end
+
+      def requires_authorization?
+        payments.requires_authorization.any? && payments.completed.empty?
+      end
     end
   end
 end
diff --git a/engines/order_management/spec/services/order_management/order/updater_spec.rb b/engines/order_management/spec/services/order_management/order/updater_spec.rb
index 7531ff7ec5..d838789bec 100644
--- a/engines/order_management/spec/services/order_management/order/updater_spec.rb
+++ b/engines/order_management/spec/services/order_management/order/updater_spec.rb
@@ -150,6 +150,26 @@ module OrderManagement
           end
         end
 
+        context "when the order has a payment that requires authorization" do
+          let!(:payment) { create(:payment, order: order, state: "requires_authorization") }
+
+          it "returns requires_authorization" do
+            expect {
+              updater.update_payment_state
+            }.to change { order.payment_state }.to 'requires_authorization'
+          end
+        end
+
+        context "when the order has a payment that requires authorization and a completed payment" do
+          let!(:payment) { create(:payment, order: order, state: "requires_authorization") }
+          let!(:completed_payment) { create(:payment, order: order, state: "completed") }
+
+          it "returns paid" do
+            updater.update_payment_state
+            expect(order.payment_state).to_not eq("requires_authorization")
+          end
+        end
+
         context "payment total is greater than order total" do
           it "is credit_owed" do
             order.payment_total = 2
@@ -203,6 +223,7 @@ module OrderManagement
               order.total = 30
               allow(order).to receive_message_chain(:payments, :valid, :empty?) { false }
               allow(order).to receive_message_chain(:payments, :completed, :empty?) { false }
+              allow(order).to receive_message_chain(:payments, :requires_authorization, :any?) { false }
 
               expect {
                 updater.update_payment_state