A deferred capped call is a capped call whose payoff is not received instantaneously by the option holder, but rather at maturity. The payoff is a cash amount equal to the difference between the barrier level (cap barrier) and the strike price. It becomes payable if the underlying asset crosses the barrier from below. However, payment is deferred till the expiration date of the option.

On the other hand, the payoff of a non-deferred capped call is received instantaneously by the option holder. The payoff is a cash amount equal to the difference between the barrier level (cap barrier) and the strike price. It immediately becomes payable if the underlying asset crosses the barrier from below.