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Gingergaye here with Electronic Money Company.
What is the difference between voiding a credit card transaction and refunding it?
If the customer wants to return a product the same day they purchased it, then use the void process from your credit card processor. The ticket will not be batched to your bank. You are charged a transaction fee for both the sale and the void, but you will not incur a percentage rate fee for the transaction or the void.
However, if a customer wants to return a product any time after the day it was purchased, then the original transaction goes through the batch process and is charged a percentage rate and transaction fee. The return is only charged a transaction fee. The charge is returned but the merchant still has the expense of the credit card processing rate plus the transaction fees. So if you have a customer wanting to return something the same day they purchased it, then be sure to use the void process because it saves your money.
I hope you learned something about when to void and when to refund a transaction. If you have any questions feel free to give us a call. We answer your questions even if you’re not our customer. Call us at 505-296-2847.
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