Adjustment

As it relates to payment processing, an adjustment is a transaction that corrects or modifies an error on a ledger entry. The error could be a duplication of a transaction or the result of a cardholder dispute.

Adjustments are not uncommon, as there are numerous situations where they may be necessary. For example, an adjustment could be contractually required if certain conditions are met, such as a customer receiving a discount for orders over a predetermined dollar amount. Post-authorization tips in restaurants typically necessitate an adjustment, although most processors/software handle this step automatically.