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When it comes to deciding whether to void or refund a transaction, it's important to understand the difference. The key factor to consider is that every sale involves two steps: authorization and batch closure. Authorization occurs when a card is swiped, dipped, or keyed in, and the transaction is either approved or declined. After authorization, the transaction remains in the system until the batch is closed, which happens daily. Batch closure sends the transactions through processing networks to finalize the cycle. Voiding a transaction is done before batch closure, while refunding is done after. Remember, voiding cancels the transaction before it is settled, while refunding occurs after settlement.
