The difference between a void and a refund comes down to whether or not a transaction has been settled. When a payment is processed, the card processor verifies that the cardholder's account is valid and that funds are available before sending a success/decline message. Once this is complete the funds are held and the balance is deducted from the cardholder's available balance, but not yet transferred to your merchant account. At the end of the day, all transactions are batched out for settlement.
An unsettled transaction can be voided which stops the transaction from processing and removing it from the customer’s account effectively canceling the transaction. Once a transaction has been settled, it can only be refunded, and a partial refund can only be made to a settled transaction.
Payment gateways may have different processing times for settling transactions, so iClassPro will automatically attempt a void before processing a refund. Void transactions only charge a per transaction fee and no settlement fees so voids are generally less expensive than refunds.
A voided transaction will typically disappear from a customer’s credit/debit account statement within 24 hours, while a refund may take 3 to 5 business days to appear on a customer’s credit/debit account statement.
Some card-issuing banks could take 2 to 3 days to remove the pending charge. If a voided transaction is not removed from a cardholder's account statement within 3 business days, the cardholder may need to contact the bank to request that the bank makes the funds available again.