Processing Credit Card Refunds and Voids

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Processing Credit Card Refunds and Voids

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Processing Credit Card Refunds and Voids

Refunds and Voids – What’s the Difference?

There will be times for whatever reason that your customers will ask for their money back. When is it considered a refund and when is it considered a void?

A void is when you cancel the transaction before it has a chance to settle. Usually it’s only possible to void a transaction the day you originally obtained the authorization on the sale, as most credit card processing hardware and software solutions will settle your transactions on a daily basis.

By voiding the transaction, the original sale amount will not post to your customer’s credit card account. However, even though your customer’s credit card will not be charged, there may still be a temporary hold on the original amount that was authorized. This is called a “soft charge” and it can last up to 5-7 business days until it is removed. Because of this, some of your customers may think you actually charged their card when it’s really just a temporary hold on funds. If they ask you about this, just have them check with the company that issued their credit card. The charge should be listed as “pending”, not as “posted”. If by some chance it has posted, then you need to do a refund.

A refund needs to be processed if the transaction has settled. Example: a customer orders from you and you realize you’re out of stock on that item. You contact your customer and they reply 2 days later and state they want a refund. Since the transaction has settled by this time, you need to do a refund instead of a void.

Most internet merchant account processing gateways and credit card terminals will allow you to process a refund up to 90 days from the time you originally charged the customer’s credit card. It normally takes anywhere from 3-5 business days for the refund to post to your customer’s credit card once the refund has been processed.

Do You Currently Have a Merchant Account for Your Business?

Let The Transaction Group save you money!

Credit card companies adjust their rates as frequently as 2 times each year. Often, merchants don’t realize that their rates have been adjusted, and may be paying more than they could be with another processing company. If you are currently processing credit cards, take advantage of our FREE Rate Analysis. Chances are we can save you money on your current merchant account rates and fees.

Are You EMV Compliant?

Merchants that process customer-facing credit card transactions will be required to have a new EMV terminal in place by October 2015. Those that do not may be held liable in the event of a security breach in which credit card data is stolen.

The Transaction Group is offering FREE EMV Terminals to merchants that set up merchant services with our processing partners. A $500 value!

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Need immediate assistance? Complete this form or call us today at 888-383-8056.

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Are you shopping for a better rate? Let us save you money!

Most merchants are unaware that interchange rates are adjusted as much as 2x per year. Over the course of several years, those adjustments can hike up a merchant’s rate and cost the merchant thousands in processing fees. Contact us via the form above, or call us today at 888-383-8056. Chances are, we can save you up to 25% over your existing rates and fees!

Why do businesses choose to work with The Transaction Group? 

  • We aim for 100% customer satisfaction. We understand that the customer comes first. At the end of the day, if the customer is not happy, we’re not happy.
  • We offer a FREE rate analysis to every business. In most cases, we can save a business up to 25% on existing rates and fees. But if we can’t beat a customer’s rate, we’re upfront from the start. We don’t waste the customer’s time.
  • We are reliable and always available. If a customer has any concerns, we’re available even after business hours. We’ll address any issues immediately.
  • We don’t believe in one-size-fits-all.We provide solutions based on the specific requirements of each and every business. What’s best for one small business may not work for another.
  • We have a fast & easy setup process. In most cases, we offer a fast and easy approval and set up. While some high risk businesses can have longer underwriting times, we keep the customer informed throughout the process and work for fast approvals.
  • We have solutions for every business type. From low-risk card-present credit card processing solutions to payment processing solutions for high risk e-commerce stores, we’ve got it all.

Let’s Work Together.

At The Transaction Group, customer satisfaction is our priority. Allow us to show you what we can do for you.

Let’s Work Together.

At The Transaction Group, customer satisfaction is our priority. Allow us to show you what we can do for you.

2019-02-03T10:22:38+00:00

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