Transaction Type

Transaction Type refers to the different categories of transactions that can occur in the payment processing lifecycle. Some examples of transaction types include the following:

  • Purchases — Occur when a customer buys goods or services from a merchant.
  • Refunds — Occur when a merchant returns funds to a customer’s account, usually because the customer returned goods or canceled services.
  • Chargebacks — Occur when a customer disputes a transaction, and the issuing bank reverses the transaction, returning the funds to the customer’s account.
  • Authorizations — Occur when a merchant requests approval from the issuing bank to charge a customer’s account for a specific amount.
  • Captures — Occur when the authorized transaction is submitted for settlement.
  • Voids — Occur when a merchant cancels a transaction before it has been settled.

Each type of transaction has specific rules and procedures associated with it and may incur different fees.