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When should you void and when should you refund a transaction? It's important to remember that every sale involves two steps - authorization and batch closure. Authorization occurs when a card is swiped, dipped, or key-entered, and the transaction is either approved or declined. After authorization, transactions remain in the system until the batch is closed, usually on a daily basis. This closure process sends transactions through processing networks to complete the cycle. Voiding a transaction cancels it before batch closure, while refunding reverses it after closure.