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Voiding and refunding are two important actions in processing transactions. Voiding should be done when a sale has been authorized but not yet settled, meaning the transaction has not been completed. Refunding, on the other hand, should be done after the transaction has been settled. Authorization occurs when a card is swiped, dipped, or key-entered, and the transaction is either approved or declined. The transaction remains in the system until the batch is closed, which should be done daily. Closing the batch sends the transactions through processing networks to complete the cycle, also known as settlement or batching.
