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In a transaction, there is a crucial distinction between voiding and refunding. A void should be used before the batch closure, which occurs daily after a sale is authorized. When a card is swiped, dipped, or key-entered, authorization is sent to the issuing bank for approval. If authorized, the transaction remains in the point-of-sale system until the batch closes, completing the transaction cycle through settlement. If a customer requires a change or cancellation before this closure, the transaction can be voided. However, if the batch has already closed, a refund is necessary to return funds to the customer.
