Void

What a void is

A void cancels a credit or debit card payment after authorization but before settlement. The issuer has approved the transaction and reserved the amount against the customer’s available funds, but the money has not transferred to your business. A void tells the payment system not to complete that sale.

Voids fit situations like a duplicate payment, an out-of-stock item, a customer cancellation before shipment, or an error caught at the register. Once the payment has settled, it is too late to void it. You must issue a refund to return the money.

Void before settlement to stop the sale; after settlement, use a refund.

How it works

You submit a void through your point-of-sale system, gateway, or processor dashboard. Find the original transaction by its transaction ID, order number, time, or card’s last four digits, then void it before the batch containing it is submitted for settlement. The cutoff follows your processor’s batch schedule, so a same-day void is not guaranteed if the batch has already closed.

The customer may still see the authorization as pending after you void it. Their bank controls when that hold disappears, so the available funds might not return immediately. Tell the customer you canceled the payment and did not refund a completed charge. Record the void against the sale and inventory so your records match the transaction.

What it means for your costs

Voiding before settlement avoids the interchange and network fees associated with a completed card sale. It also avoids sending a settled payment back as a refund. A processor can still charge a flat authorization fee for the original attempt, so look for authorization fees in your processing fee schedule.

For example, if you authorize a $100 sale and void it before settlement, the customer is not charged for a completed sale and your business does not receive the $100. If the sale has already settled, a refund returns the $100 instead. The exact fee impact depends on which fees your contract applies to authorizations, refunds, and settled sales.

Where it goes wrong

A void does not return money that has already settled. Trying to void a settled payment can fail, leaving you to issue a refund while the customer waits for the credit to post. Voiding promptly also gives you a chance to resolve a canceled or mistaken order before it becomes a dispute.

Keep voids in your daily reconciliation alongside sales and refunds. A void is not a completed card sale, and it does not count toward your dispute ratio. For repeated checkout errors, train staff to check the transaction status before retrying a payment, since a second attempt can create a duplicate authorization.

What you can actually change

1. 01
   Check the status. Confirm the payment is authorized or pending and has not settled. A settled transaction needs a refund, not a void.
2. 02
   Void before cutoff. Use your POS or payment dashboard before the batch closes. The batch schedule sets your practical deadline.
3. 03
   Reconcile the record. Match the void to the order, inventory, and daily sales records, then tell the customer the authorization was canceled.
4. 04
   Review authorization fees. Compare the authorization fee in your processing fee schedule with your transaction records. A void can stop sale-based fees without reversing a fee for the original authorization.

Frequently asked questions