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Difference Between Auth/Settle and Credit/Void

Auth/Settle

Every transaction has two parts, occurring in this order: the authorization and the settlement.

Authorization:

The authorization is the validation of the availability of the amount you want to charge to a card. It is not a charge. It is simply making sure that the card and amount is valid.

Settlement

The settlement can only occur after a successful authorization. It is the actual transfer of funds between the customer, the bank processor and the merchant.

Credit/Void

Each of these actions are only available at certain times.

Void

You can only void a transaction before the settlement. Voiding is essentially just canceling a transaction before any funds are transferred.

Void Transaction

Credit

Crediting is only available after a successful settlement, once the money is transferred. You cannot credit before the settlement, meaning you cannot credit a transaction that has only been authorized. You can credit for different amounts. Maximum credit is the full amount of the transaction, but you can perform partial credits for any lesser amount if you wish.

Credit Transaction

Article written by Stacey D.