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The key difference between void and refund is crucial to understand. When a sale occurs, two main steps come into play. First, the card is authorized by the issuing bank, and the transaction is either approved or declined. Second, the batch must be closed daily, sending transactions through processing networks for settlement. Voiding cancels a transaction before it is settled, while a refund reverses a settled transaction. Voiding should be done before batch closure, while refunds are for settled transactions.
