Voids vs. Refunds

When a customer returns goods they purchased with a card, there is a distinction between processing that as a "void" vs. a refund.

Voids

Voids are more like an "undo" of the original transaction and typically result in either no or reduced transaction fees. Voids are time sensitive, however, so the void must be done before the original transaction has settled. Settlement usually is done on a daily basis; however, some processors, such as First Data Rapid Connect, settle transactions much faster (between 20 and 25 minutes after processing). This time period isn't determined by the software.

Refunds

Once the original "sale" card transaction has settled (from 20 minutes to a day after processing depending upon the processor), the return of funds to the customer's card is considered a separate transaction and described as a "refund." This would have a transaction fee associated with it similar to other card transactions. Additionally, any return sale where no original transaction token is referenced made to a card (present) would be treated as a refund, not a void.

There are a number of ways in the software to return goods. One choice, it to process a credit sale using negative quantities in a Point of Sale, Sales transaction. Another is an invoice reversal.

In Point of Sale, Sales, a "void" check box is provided on the bankcard remittance panel of the Process (F12) form when processing a credit sale. An original invoice also needs to be specified either by item or on the Process (F12) form. You may need to click in the bankcard amount text area for this to become visible. Checking the box is no guarantee that a void will actually process as a void, it just indicates that you want to attempt to void the original sale. If checked, we send a "void" indicator in the request to the card processor. The void request may result in a refund.

Invoice reversals always attempt to void the card.

In some cases, you may need to use your customer portal provided by TSYS Cayan or Verifone to credit a card if the void/refund fails, but the transaction itself has already been credited through the software.

In most cases, debit card transactions can not be voided or refunded without the card present (tokens won't work).

In other cases, voids and refunds that reference an original sale with a card, can be processed without the card being present. Voids and refunds processed using a transaction token are usually processed using a web service and don't require a card device.