A Void is an action that cancels a credit card transaction before the transaction has been settled. Voiding a transaction removes the authorization so the transaction will never post to the customer’s account. This differs from a refund, which is applied after a transaction has been settled.
It is important for merchants to understand the difference between voids and refunds as they have different impacts on their accounting and transaction fees. Voids are usually done on the same day as the original transaction, before the batch of transactions is sent for settlement.
Once a transaction is settled, it can no longer be voided, and a refund must be processed instead. Merchants may need to void transactions for various reasons, such as a customer changing their mind about a purchase or an error in the transaction amount.
It is essential for merchants to process voids promptly to avoid unnecessary charges and to ensure accurate accounting and reporting.