Definition and Examples of Transaction Voids
A transaction void is a process where the merchant cancels the transaction before it is processed in the customer’s account on their credit or debit card. A transaction can only be voided if it has been authorized and not yet settled.
How Do Transaction Voids Work?
If a transaction is made incorrectly or the customer wishes to cancel the transaction before it is processed, the merchant can void the transaction. Fraudulent transactions that have not been fully processed can also be voided. By voiding the transaction, the merchant’s bank will not pay for the transaction, and the customer’s bank will not charge their account for it. For this to happen successfully, the void must occur after the transaction is authorized but before it is settled.
Transaction Voids vs Refunds
Transaction voids differ from refunds. If the transaction has already been settled, the merchant will not have the option to void it. Instead, the merchant must submit a refund request that credits the customer’s account with the purchase amount. Refunds can take up to 30 days to process and will ultimately remain on your bank statement, unlike transaction voids.
Source: https://www.thebalancemoney.com/what-is-a-void-transaction-5194609
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