Understanding Reversals & Refunds

The action you will take to return funds to a customer varies based on the status of the transaction.

A transaction in the “Approved” status cannot be refunded as funds have not yet been transferred from the cardholder. If the transaction is still in the “Approved” status and not yet “Settled,” you can either cancel, or void, a transaction. (Note, as described in the Processing Cycle & Timeline sections above, generally the transaction will be in this “Approved” status up until 7 PM ET on the day the transaction was made.)

Here is information about your two options:

• Canceling: Canceling a payment removes the approved transaction from their daily batch, and thus, it isn’t sent to the processing bank and the money isn’t withdrawn from the cardholder nor transferred to your account. Because the payment was already authorized and canceling a transaction doesn’t reverse the authorization, you can cancel a payment, but then re-add it to their batch if the circumstances change within 24 hours of the transaction being submitted.
• Voided - The second option for reversing an approved payment is to void the transaction. Voiding a transaction reverses the existing authorization, and thus, it is a permanent action. Once Voided, a payment cannot be re-added to the your batch at any point.

Generally it is recommended to “void” the transaction as it is not typical that you would need to re-add it to the batch. Once the transaction is “Captured” or “Settled,” you can process a refund.

Have questions, or need support? Contact us at support@inspectpoint.com.