Learn What Void Transaction Is
Void transactions are transactions that are canceled by vendors or merchants before they settle through credit or debit card accounts of consumers. Learn why card void is important in your accounting software and the general process of voiding checks. Check or card ought to be voided if:
- You still have it in hand and the amount is incorrect
- It was given to the wrong bank or vendor
- The invoice ought not to have been paid
Once a card has been voided, a record of that transaction remains in the system. If you have already sent out the check, you ought to only do a card void if they never go and you require sending a new one.
The card void function is utilized to cancel an existing payment transaction. If the check has been utilized in paying an invoice, then, voiding that card or check will also reverse the payment for that invoice, returning it to unpaid status. Once the open invoice is restored, it’s going to display aging on the open invoices and the seller aging reports. If the initial card was entered without applying it to open invoices, then the check void process will also void the expensive section of the check.
If a card number has not previously been recorded because of the card being destroyed before ever entering the system, you’ll have a gap in sequence numbers. If your business must ensure accounting for all check numbers, it’s important to record and void that card or check-in your accounting software. By so doing, you’ll not question the missing check numbers later on because they will be accounted for in the system.
Void Transactions and Refunds
A void transaction is different from a refund. With void transactions or void cards, no fund will ever be transferred from the credit or debit card of the customer to the vendor. However, a refund is issued following a transaction completion and the company or consumer has paid for services or goods.
Some credit/debit cards and merchants’ processing systems might settle transactions instantly. Immediately a transaction is completed, the vendor has to grant a refund instead of voiding that transaction. A refund, unlike a void transaction, can take a longer time to pass through an account of a customer. Some refunds may take 48 hours to reflect on an account of a customer, while others may take up to 30 days to reflect.
Hopefully, that’s what you needed to learn about the void transaction or card void. And also, hopefully, you can distinguish well between void transactions and refund.
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