Void Transaction

A void transaction, also known as a voided charge, is a credit or debit card transaction that has been canceled by the merchant before it has been settled. This means the transaction is stopped before the funds are transferred from the customer's account to the merchant's account. Voiding a transaction is typically done when the merchant notices an error or when a customer changes their mind about a purchase shortly after the transaction is initiated.

Key Points about Void Transactions:

Voided Charge: The term "voided charge" refers to the specific transaction that has been canceled before settlement. This indicates that the charge will not be processed, and no funds will be deducted from the customer's account.

In conclusion, void transactions are an essential tool for merchants to manage errors and customer cancellations efficiently, ensuring that unnecessary charges are prevented and financial records remain accurate.