Introduction
A transaction that is cancelled by a merchant or vendor before it is completed through a consumer's debit or credit card account is known as a void transaction.
What is Void Transaction?
When a transaction becomes void, that transaction does not get labelled as void on the customer's account statement. It usually appears as a pending transaction when the customer checks their account online. They are different from refunds, which are issued after the transaction has cleared through the customer's account.
Examples of Void Transaction
Some examples of void transactions are mistaken charges, incorrectly-charged merchandise, and fraudulent purchases. Though a merchant swipes a card to the terminal, it is not fully settled until the amount is actually transferred from the customer's account to the merchant. In the case of a problem, it can be voided later as the transfer is not instantly completed.
