When dealing with transactions, it's important to know how to correct mistakes or handle customer returns. Helcim provides two main tools for this: refunds and voids.
While they might seem similar, they serve different purposes and have different implications for your business. This article will explain what refunds and voids are, when to use them, and how they affect your processing fees.
In this article
What is a void?
A void is used to cancel a transaction shortly after it occurs. It's like hitting the "undo" button on a sale. Voids are only possible before the transaction "settles" or is finalized by your processor.
| Think of it like this: if you accidentally charge a customer twice, you can void the extra transaction as long as it's done quickly. |
What is a refund?
A refund is used to return money to a customer after a transaction has been settled. This is necessary when a customer returns an item, cancels a service, or if there was an error that wasn't caught immediately.
Refunds and voids: Key differences
Feature | Void | Refund |
When to use | Same day as the transaction, before settlement | After the transaction has settled |
Amount | Full amount of the original transaction | Full or partial amount |
Purpose | To correct errors immediately | To return money to the customer |
Outcome | The pending charge on the customer’s credit card will typically disappear within 1 to 2 days. | The funds can take 5 to 10 business days to appear back on the customer’s credit card (timelines can vary depending on the card issuer). |
Processing fees for voids and refunds
Voids: Transactions that are voided do not incur any processing fees.
Refunds: The original processing fees for the transaction are applied.
Next steps
To learn how to refund or void card transactions, see Refunding and voiding card transactions.
To learn how to refund or void ACH payments, see Refunding and voiding ACH payments.
FAQ
Can I void a transaction from yesterday?
No, voids can only be processed before a batch settles, which typically happens at the end of the same day. After settlement occurs, you'll need to process a refund.
Can I refund part of a transaction?
Yes, you can process a partial refund for card transactions. However, ACH payments can only be refunded for the full amount.
Will I get my processing fees back if I refund a transaction?
No, the original processing fees are applied to refunds. You only avoid fees when you void a transaction.