Question 1

Is a void transaction the same as a refund?

Accepted Answer

No. When a transaction is voided, no money ever leaves the customer&acirc;s account. Refunds, on the other hand, occur after a transaction is settled and funds have been removed from the cardholder&acirc;s account. Remember that refunds also take a lot longer to process than voids. Some refunds can take over 30 days to reappear in the cardholder&acirc;s account.

Question 2

What is an example of a voided transaction?

Accepted Answer

Hereâs a quick example: letâs say youâre a restaurant manager. Youâre training a new employee, and she accidentally rings up the wrong meal on your customerâs credit card. If you get to it right away, the transaction can be voided, removing it from sales tallies for the day. It wonât be charged to the customerâs account; it will be as if the transaction never happened.

If no one notices the mistake until the transaction has already been settled with the cardholderâs account, you would then need to process a refund or issue the customer a credit to make up for the mistake.

Question 3

How long does a void transaction take?

Accepted Answer

There&acirc;s not a set answer for this, as it depends on factors including the institution in question, when the void was issued, etc. Until the void is cleared, the transaction will be placed on hold and appear as a pending transaction in the cardholder&acirc;s account. That said, the voided transaction should disappear within two to three business days, and any funds held will be released.

Question 4

Why does a void transaction happen?

Accepted Answer

There are many reasons why you might want to void a transaction. Three of the most common reasons are either an error has been made, a customer has changed their mind, or fraud is suspected. In the two former cases, you would simply want to cancel the transaction before it is settled. However, in the latter circumstance, you&acirc;d be attempting to stop a transaction before the money is stolen from you or your customer.

Question 5

Can a voided transaction be reversed or undone?

Accepted Answer

Generally, no. Once a transaction is voided, the cancellation is final. The authorization hold is released, and the transaction wonât proceed to settlement. If you voided a transaction by mistake and still need to collect payment, youâll have to process a new transaction with the customerâs card.

Question 6

Will a voided transaction affect my credit score?

Accepted Answer

No. Because a voided transaction is canceled before settlement, no funds are transferred and nothing is reported to credit bureaus. The transaction effectively never happened from a financial standpoint. The customer may see a temporary pending charge on their account, but it will drop off without any impact to their credit.

Question 7

How do I know if my processor supports voids?

Accepted Answer

Nearly all payment processors support void transactions; it&acirc;s a standard function in credit card processing. You can typically find the void option in your POS system, payment gateway dashboard, or virtual terminal. If you&acirc;re unsure how to access it, check your processor&acirc;s documentation or contact their support team. It&acirc;s worth familiarizing yourself with the process before you need it.

Question 8

What happens if I try to void after settlement?

Accepted Answer

You can&acirc;t. Once a transaction has been batched and settled, the funds have already transferred and the transaction is complete. At that point, your only option is to issue a refund, which returns the settled funds to the customer&acirc;s account as a separate transaction. Refunds take longer to process and typically don&acirc;t recover the processing fees you paid on the original sale.

Question 9

Can I do a partial void for a transaction?

Accepted Answer

It depends on your processor. Some payment systems allow partial voids, letting you reduce the transaction amount before settlement, which can be useful if a customer removes an item from their order or you need to adjust the total. However, not all processors support this feature. If yours doesn&acirc;t, you would need to void the entire transaction and reprocess it for the corrected amount.

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