Void vs refund decision guide

When you need to cancel a transaction, choosing between void and refund affects both timing and costs. Void cancels unsettled transactions before funds are transferred, while refund returns funds after settlement. This guide helps you determine which method to use based on transaction status and timing.

Decision tree

Use this interactive decision tree to determine whether to void or refund a transaction based on its current status.

Recommended strategy by use case

Choose the right cancellation method based on transaction timing and status. Here’s a quick reference:

Void

Void immediately cancels a transaction before the batch closes and before funds are transferred. This is the preferred method for same-day cancellations because it avoids interchange fees and ensures funds never leave the customer’s account.

Use void when:

• The transaction is still in an open batch before the cutoff time
• You need to cancel an authorized or captured transaction same-day
• You want to avoid interchange fees on the cancelled transaction
• The customer requests cancellation before end of business day

Void is available when:

• TransStatus is 11 (Authorized) or 1 (Captured)
• SettlementStatus is 0 (Pending)
• Current time is before batch cutoff (default 5 PM ET, configurable per merchant)
• BatchStatus is 0 (Open)

Void implementation

Call the void endpoint with the transaction ID to immediately cancel the transaction:

$
  GET /MoneyIn/void/{transId}

The transaction will be marked as voided and removed from the settlement batch. No funds will be transferred from the customer’s account.

Void best practices

Follow these best practices when implementing void functionality:

• Check transaction status before attempting void to verify eligibility
• Implement void functionality in your customer service or admin interfaces
• Set up monitoring for batch cutoff times to alert staff of void deadlines
• Log all void attempts including successes and failures for audit trails
• Display clear messaging to users about void vs refund timing differences

Refund

Refund creates a new offsetting transaction that returns funds to the customer after settlement has begun or completed. Use refunds for any transaction that can no longer be voided due to batch closure or settlement status.

Use refund when:

• The batch has closed and transaction is in transit for settlement
• The transaction has already settled and funds were transferred
• You need to return a partial amount to the customer
• The customer requests a return after the void window has passed

Refund is required when:

• SettlementStatus is 1 (In Transit), 2 (Transferred), or 3 (Funded)
• The batch cutoff time has passed
• Any transaction that can’t meet void eligibility criteria

Refund implementation

Call the refund endpoint with the transaction ID and amount to process the refund:

$
  GET /MoneyIn/refund/{transId}/{amount}

Parameters:

• transId - Original transaction ID to refund
• amount - Refund amount in cents (can be less than original for partial refunds)

The refund creates a new transaction that offsets the original payment. Funds typically return to the customer’s account in 2 to 3 business days, though it may take up to 5 to 7 business days depending on the customer’s bank.

Refund best practices

Follow these best practices when implementing refund functionality:

• Store original transaction IDs to enable easy refund processing
• Implement partial refund support for flexible customer service
• Set up webhooks to track refund processing status and completion
• Communicate refund timeline clearly to customers (2-3 business days typical)
• Log all refund transactions with reasons for audit and reporting purposes
• Consider implementing refund approval workflows for large amounts

Status field reference

Understanding transaction and settlement status codes helps you determine void or refund eligibility programmatically.

Transaction status

Use the TransStatus to help determine if a transaction can be voided.

Settlement status

Use the SettlementStatus to understand if a transaction has been settled and how to handle canceling it.

Batch status

Use BatchStatus to determine if the batch is still open for voids.

Timing considerations

Batch cutoff time is critical for void eligibility. Understanding your merchant’s cutoff schedule ensures you use the correct cancellation method. Here are key timing considerations:

• Default cutoff: 5 PM ET
• Configurable: Per merchant account settings
• Timezone: Always Eastern Time regardless of merchant location
• Weekend/holiday: Batches may close earlier or follow modified schedules

Processing timelines differ significantly between voids and refunds:

Void timeline:

• Immediate cancellation when executed
• Funds never leave customer account
• No return timeline needed
• Must be executed before batch cutoff

Refund timeline:

• Refunds are initiated immediately
• Settlement completes in 1 business day (if transaction was in transit)
• Funds are typically returned to customer in 2 to 3 business days
• May take up to 5 to 7 business days for the funds to be returned depending on customer’s bank

Implementation tips for timing

Implement these features to handle timing correctly:

• Query current batch status before presenting void option to users
• Display countdown timer showing time remaining until batch cutoff
• Automatically switch UI from void to refund option after cutoff passes
• Store merchant-specific cutoff times if they differ from defaults
• Account for timezone conversions when displaying cutoff times to users

Quick reference

This section provides quick links to relevant API endpoints and integration guides mentioned in the decision tree and throughout this guide.