Category: Payments & Transactions
Overview
When a payment needs to be canceled or corrected, you may see options such as Void, Refund, or Reversal.
Although these terms are related, they serve different purposes.
Understanding the difference can help prevent duplicate customer charges or incorrect credits.
1. What Is a Void?
A void cancels an eligible payment before it has completed settlement.
Example
A customer is accidentally charged $150 instead of $15.
If the transaction is still eligible for a void, the merchant may cancel the incorrect payment and process the correct amount.
Important: The customer's bank may temporarily continue displaying a pending authorization.
2. What Is a Refund?
A refund returns money to a customer after the original payment has been settled.
Example
A customer purchases an item for $50 and returns it the following day.
The merchant processes a refund to return the applicable amount.
Refunds may take several business days to appear, depending on the card issuer and processing arrangements.
3. What Is a Payment Reversal?
A reversal generally cancels or releases a previously approved authorization.
Depending on the payment system, a reversal may happen automatically when a transaction cannot be completed, or it may be initiated through an authorized payment function.
Example
A transaction receives an authorization but experiences a communication error before completing normally.
The payment system may attempt to reverse the authorization.
Important: A reversal is not necessarily the same as a refund, and the available functions vary by processor.
Quick Comparison
Feature |
Void |
Refund |
Reversal |
|---|---|---|---|
Typical timing |
Before settlement |
After settlement |
During authorization or transaction correction |
Purpose |
Cancel a payment |
Return funds |
Cancel or release an authorization |
Merchant-initiated? |
Usually |
Usually |
Sometimes automatic |
Pending bank activity possible? |
Yes |
Depends |
Yes |
Which Option Should I Use?
Use Void when the transaction is still eligible to be canceled before settlement.
Use Refund when a completed and settled purchase needs to be returned.
Contact Support if the terminal shows a communication error or the transaction status is unclear.
Do not attempt multiple corrections without first confirming the original payment's status.
Important Reminder
Before processing another payment, refund, void, or reversal, check the transaction history to avoid duplicates.
Need Assistance?
Verova Payments Support
(833) 925-6999 — Option 2
Verova Payments | Merchant Help Center