Refunds or Returns prior to credit card processing device settlement use the Reversal

    

Ingenico iCT Terminals       Verifone Vx 520 Terminal

Let’s talk about transactions where the terminal, or the software, has not settled yet. In that case, on the Verifone VX520’s and Ingenico line of terminals, the merchant is going to want to process a reversal and a full reversal. If a pin debit transaction or a credit card transaction was run for an improper amount, do a full reversal. Then rerun the card for the correct amount. That’s going to work well if the customer is standing there, and it was a $50 transaction, was supposed to be $5, you’re standing there, you tell them, “Oh my goodness. I’m sorry. I added a 0 by accident.” Run a full reversal. Grab the card again. Run it for the $5, you’re on your way.

If the mistake on the transaction was discovered after the client has left, and it’s the same situation where the authorization amount is more than what it was supposed to be. For example, a customer has left, and you had a sales receipt signed for $50, or it was a pin transaction for $50. The correct amount was actually supposed to be $25. Since the customer is actually not present, you can do a partial reversal, and you would reverse the differing amount. If you were trying to make it $25, obviously, in this case, you would do the reversal for $25 and then the net amount would be the correct amount of $25. Only use a partial reversal when a customer is not present. Full reversals make the accounting much easier for the bookkeeping staff.

Only use Void if it is the only thing offered

Never use a void unless that is all that is offered by the credit card terminal, or the credit card processing gateway. The reason is, the void simply deletes the transaction from the batch. Unlike a reversal, where a reversal actually tells the card issuing bank or the authorization network, “Hey, we don’t want that anymore. Get rid of it. There was a mistake. Get it back to 0.” When you do a reversal, it basically puts the credit back to the card quickly. If a void is done, the transaction then gets deleted out of the batch. It takes more time for the credit to get back to the card when the settlement has been completed.

Use a return or Refund after the settlement      

So those are the two options that you have if a transaction hasn’t been settled yet. Anything for a return of the product, or some sort of a refund that is happening after the credit card terminal or processing gateway or software has settled, we’re always going to issue a return or a refund. That’s simply going to be just following the prompts on the credit card terminal. If you are using a credit card terminal, you’re going to have to call the processor and get the full card number and expiration date to do a refund. If you’re processing in a card not present environment, or in a card present environment with a gateway, those transactions that are needing to be refunded, typically are very easy to click on in the gateway and go ahead and refund.