What is the difference between a void and a refund?

A void happens before settlement and removes the pending charge, so no money moves. A refund happens after settlement: the merchant sends a new credit, the customer waits several business days, and processing fees on the original payment are often not returned.

Timing

• Void: between authorization and capture or settlement, often the same day.
• Refund: any time after settlement, within the merchant's policy and scheme limits.

Money flow

• Void: the hold is released; nothing is debited or credited.
• Refund: the original sale is settled, then a separate credit returns the money.

Customer experience

With a void, the pending amount usually disappears quickly. With a refund, the customer sees the charge and later a credit, which can take several business days.

Costs

A void typically avoids most settlement-related fees. A refund may carry its own processing fee, and fees on the original payment are often kept.

Effect on disputes

Both reduce the risk of a chargeback if done quickly, since the customer gets the money back without contacting their bank.

What it means for payment operators

For your merchants, choosing correctly between void and refund saves fees and support calls. Operations tools that show whether a payment is still voidable, and reconciliation that matches refunds with sales, make the choice simple.