Although the voided transaction does not appear on the customer’s account statement, it may be visible as a pending transaction when the customer checks their account online.
During a transaction, the merchant swipes the customer’s debit or credit card, and the terminal authorizes the transaction if sufficient funds are available in the customer’s account. However, the transaction is not yet settled, as the payment must be released from the customer’s account to the merchant.
If any issues arise with the transaction, it can be voided before settlement. Since the transaction is still pending and hasn’t cleared the customer’s account, the sale can be stopped from going through.
To void a transaction, the customer needs to contact the merchant and request the reversal, or the merchant may proactively void the transaction if a mistake or issue is noticed at the point of sale. Once voided, the transaction will appear as a pending transaction on the customer’s account, but it will disappear after a specific period.
Voiding can also be employed to address fraudulent charges. Card issuing companies have fraud detection services that detect suspicious transactions. To ensure customer safety and security, these transactions are often placed on hold. The customer can verify the transaction’s legitimacy with the company, leading to an immediate voiding of fraudulent transactions. In cases where the customer cannot be reached for verification, many card companies automatically void suspicious transactions before settlement.
Written by Andrii Vovk