Transaction corrections
What Is the Difference Between a Void and a Refund?
A void generally stops or cancels a payment or open ticket before it is fully completed, while a refund sends money back after a completed payment. The exact labels and cutoff points depend on the payment provider, POS, transaction status, and batch workflow.
Short answer
Check the transaction status before choosing an action
If the payment is still open, pending, or not yet completed, the system may offer a cancel or void action. If the payment is completed, the appropriate correction is usually a linked refund. Do not rely on the customer's statement view alone; confirm the provider's recorded status first.
Void
A void commonly closes an open ticket, cancels an incomplete payment, or tells the issuing bank to release an authorization hold. It may prevent a completed sale record from being created.
Refund
A refund creates a new return-of-funds record tied to a completed payment. It may be full, partial, or itemized when the provider supports those options.
Cancellation
Some systems use cancellation as an order-level action and then separately ask whether to refund a completed payment. Read each confirmation screen carefully.
Decision path
Use the recorded lifecycle, not a guess
1. Find the original record
Search by receipt, transaction reference, time, amount, location, and approved card reference. Confirm that you selected the correct customer payment before changing anything.
2. Read the exact status
Look for open, authorized, pending, completed, canceled, voided, failed, or refunded. Terminology varies, so follow the current instructions for the specific provider or POS.
3. Review the available action
If the interface offers only refund, the payment may already be completed. If it offers cancel or void, review what the action affects and whether an open order remains.
4. Preserve the audit trail
Record the reason, operator, time, amount, and original transaction reference. Avoid deleting records or using an unrelated cash payment to hide a card correction.
Customer experience
A void and a refund can look different on a statement
Authorization hold
A canceled or voided attempt may still appear temporarily as pending while the issuing bank releases the hold. The merchant should not promise a universal release time.
Refund entry
A refund generally appears as a separate credit after the provider and issuing bank process it. The customer may see the original payment and refund as distinct entries.
Receipt and confirmation
Provide the system-generated cancellation, void, or refund confirmation when available. Keep the original and corrective records connected for reconciliation.
Operational controls
Handle corrections with clear permissions and records
Before taking action
- Verify the original transaction and customer
- Confirm status, amount, and payment method
- Check whether a correction already exists
- Use the provider's current workflow
- Apply staff permissions and reason codes
After taking action
- Save the confirmation or reference number
- Update the order or customer record
- Reconcile the original and corrective entries
- Tell the customer what action was actually taken
- Escalate inconsistent statuses to the provider
Related resources
Keep the correction connected to your records
Common questions
Void and refund FAQ
Can a completed payment be voided?
Some providers use void for a narrow window or particular state, but others require a refund once payment is complete. Use the action and status shown by your provider.
Does a void disappear immediately?
Not always. A customer may continue to see a pending authorization until the issuing bank updates the account.
Can a refund be partial?
Many systems support partial refunds, but eligibility, limits, and workflow are provider-specific. Review the original transaction and current provider instructions.
What if the wrong action was taken?
Do not create another adjustment blindly. Preserve the references and contact the responsible provider or POS support team for the safest next step.
Last editorial review: August 12, 2026. Reviewed against current official Square guidance for failed or voided payments, open-ticket voids, and customer refunds.
Next step
Verify status before correcting the payment
Find the original record, confirm its lifecycle state, use the provider's supported action, and preserve both the original and corrective references.
To learn more about how TSYS can help improve the way your organization accepts payments, markets to new customers, or manages its HR responsibilities, get in touch by calling 585-981-8463 to get started.
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