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When it comes to deciding between voiding and refunding a transaction, the key difference lies in the timing and process of each. An authorization is sent out to the issuing bank when a card is used at the point of sale, and the transaction remains in the system until the batch is closed. The closure of the batch, or settlement, completes the transaction cycle. Voiding should be done before the batch is closed, while refunding is done after. Remember, voiding reverses the transaction before it is settled, while refunding reverses a settled transaction.
