Glossary

Void

A void is a financial transaction that effectively cancels a previously authorized payment before it has been finalized and settled. This action is typically taken when a transaction was initiated in error, or when a customer decides to cancel their purchase shortly after it was made. Unlike a refund, which occurs after the transaction has been completed and funds have been transferred, a void stops the payment process before it is fully executed, ensuring that the funds are not withdrawn from the customer's account.

When a void is initiated, the merchant communicates with the payment processor or card issuer to nullify the transaction. This process involves the following steps:

Voided: A transaction is considered voided when the seller or merchant cancels it after authorization but prior to its completion and settlement. This term specifically refers to the status of a transaction that has been successfully voided, indicating that no funds were transferred and the transaction will not appear as a charge on the customer's statement.

In summary, voiding a transaction is a proactive measure to prevent unnecessary charges and to maintain accurate financial records. It is a critical tool for merchants to correct mistakes quickly and to provide immediate resolution to customer requests for cancellation.

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