A void is the cancellation of a transaction before it has been settled (before the batch closes). When you void a transaction, it's removed from the current batch and no funds are ever transferred. From the customer's perspective, the authorization hold will be released — though this may take 1-3 business days depending on their bank.
Voids are different from refunds: - **Void**: Transaction canceled before settlement; no money moves - **Refund**: Transaction already settled; money is returned to the customer
From a cost perspective, voiding is preferable to refunding. When you process a refund on a settled transaction, you already paid the interchange fees and assessment fees — those are not returned to you. When you void, the transaction never settles, so no fees are charged.
Voids must be processed before the batch closes. Once a batch is submitted for settlement, you can no longer void — you must process a refund instead.
Common reasons to void: - Customer changes their mind before the sale is finalized - Entry error (wrong amount, duplicate charge) - Transaction declined after partial entry - Merchant error during checkout
When a customer wants to cancel or if you entered the wrong amount, void the transaction immediately if the batch hasn't closed. This saves you the interchange fees and assessment fees you'd pay on a refund — plus processing fees on the refund transaction itself.
Train your staff to void rather than refund for same-day errors. The savings are meaningful: on a $200 refund with a 2.2% effective rate, avoiding the refund (by voiding instead) saves $4.40 in fees.
A clothing store cashier accidentally charges a customer $185 for a $58 item: 1. Error discovered before end of day (before batch close) 2. Cashier voids the $185 transaction 3. Correct $58 transaction processed 4. Customer's authorization hold for $185 released within 1-3 days 5. Merchant pays zero fees on the erroneous transaction
You can void a transaction anytime before your batch closes — typically the nightly batch at 11 PM or whenever you manually close. Once the batch is submitted, you must process a refund instead.
No, a voided transaction incurs no processing fees because it never settles. This makes voiding preferable to refunding for same-day cancellations.
A void cancels a transaction before settlement; no money ever moves. A return (refund) occurs after settlement when money has already been transferred. Refunds may take 3-5 business days to appear on the customer's statement.
Liberty Bancard's terminal programming and POS setups make voiding easy and intuitive for staff. We train your team on the void process during onboarding to ensure no unnecessary refund fees.
Continue learning: Browse all 60 payment processing terms in our Payment Processing Glossary, or upload your statement for a free analysis of your current processing costs.