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When determining whether to void or refund a transaction, it is essential to understand that every sale involves two crucial steps: authorization and batch closure. Authorization is the initial approval or decline of the transaction by the issuing bank, while batch closure involves sending out transactions for processing and completion. Voiding should be done before batch closure to cancel the transaction, while refunds are processed after batch closure to return funds to the customer. Remember, voiding is for canceling transactions before settlement, and refunds are for returning funds after settlement.