Related Content to [Voided transaction still in customer's bank account] (2)
I voided a transaction - why does my customer still see the charge in their bank account?
Broadly speaking, there are two steps to charging a credit card:
- First, the transaction is authorized. This puts a hold on the funds in the customer's account.
- Second, the transaction is settled (usually in a batch). This finalizes the transaction, and begins the process of moving the funds from the cardholder to you. An authorization expires if it is not eventually settled; the exact length of time that an authorization can remain unsettled is up to the bank that issued the credit card.
Voiding a transaction removes it from your open batch, ensuring that it will never be settled. It does not however, remove the initial authorization. This means that the cardholder will see a pending charge for a period of time after the transaction was voided, the length of which depends on their particular bank's policies.
Some banks may be willing to expedite the release of held funds. Send your customer a receipt of the transaction that shows the original approval code, the amount of the authorization, and an indication that it was voided. They should then contact their bank and explain the situation. In many cases the bank will be willing to drop the authorization.
If you have questions or require additional information, please submit a ticket and we will be in touch with you shortly.