Void vs. Refund

If you ever rang up a customer, chances are, you've been there.  After processing the transaction, your customer pulls out a coupon, or decides against one of the items you rang, or questions a price.  "Okay," you say.  "I'll just do a refund and start over."  As a merchant, however, handling that situation with a refund is costing you money, and while it may only be a few cents, it'll add up if you do it often enough.  If the customer is still in front of you, or for that matter, any time before your business's end-of-day settlement, using the "Void" feature will likely be a better way to make a change in the amount you're charging your customer. 

Over and above any percentages, most businesses are charged a flat fee for every transaction.  When a refund is processed, the original transaction still incurs that flat fee, even if the entire amount was refunded.  When you void a transaction, on the other hand, it's as if you're saying the original transaction never really took place at all, and therefore, there's no transaction fee. 

Recently, the assistant manager at a major, regional department store was amazed to hear me explain the differences between refunds and voids.  She had no idea, and with literally thousands of transactions taking place in a typical day, leading to numerous situations requiring correction, that store could potentially save some serious cash by simply training employees to void sales when the opportunity presents itself, rather than issuing refunds. 

Of course, you'll still need to do refunds, too.  You won't be able to void any transaction that has already been settled with your bank, for example, but if the transaction just took place and voiding it is an option, choose to void and save some money.