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Voiding and refunding are two different actions that are based on the authorization and settlement of a transaction. When a sale occurs, the card is authorized by the issuing bank, and the transaction remains in the system until the batch is closed on a daily basis. Voiding a transaction cancels the authorization before it is settled, while refunding occurs after settlement, returning the funds to the customer. Remember to void a transaction before settlement and refund after settlement to ensure proper handling of transactions.