Welcome to PJ University, where we teach you how to use PayJunction like a pro. Today’s lesson is how to void and refund transactions.
To void or refund a transaction with a traditional terminal, customers would have to come to your business or you’d need to call them to get their credit card info. But, PayJunction has eliminated these steps – making it fast and easy for everyone. Here’s how it works.
When choosing between voiding or refunding a transaction, voiding is usually the best option. Since it cancels the transaction before it becomes settled, it saves you an additional processing fee.
To do this, click “Recent” from the menu on the left, which will load a page with all of your recent transactions. Click the check box of the transactions you would like to void, then click the “Void” button in the upper right. The status will update to “Void” to let you know that the transaction has been reversed.
If the transaction has already been settled, there will be a bank icon in place of a check box. This indicates that the transaction will need to be refunded instead of voided. To do this, hover over the eye icon and click “Refund” from the sub menu.
This will load a page with the transaction’s details. The action will already be set to refund and the original charge amount will be listed as well. Click “Process.” A modal will pop up to let you know if the transaction is approved. Click “Complete” to finish the refund.
When to Void or Refund a Transaction
When you run a transaction through our Virtual Terminal, the customer's account is automatically stored on file along with the transaction details for quick reference. Therefore, if a customer changes her mind about a purchase a day later, a week later or even minutes after the transaction is ran, you can access all the information you need without requiring the card or even the customer to be at the store.
To determine your refund policy, you should first consider how your rate plan affects your refunds:
- Flat or Tiered pricing: With either rate plan, you are not reimbursed for any processing fees related to refunded transactions. Why? Flat pricing offers one single rate for all transactions, which makes determining the Interchange of any single transaction a scavenger hunt. Similarly with Tiered pricing, transactions are grouped into three tiers with corresponding rates.
In either case, it’s best to void transactions rather than refund them. This way, the transaction doesn’t settle and you don’t lose money to transactional costs.
- Interchange-plus pricing: On this rate plan, you should be reimbursed for the Interchange fees but not the provider’s markup, which is a typical practice for all Merchant Account Providers. Voiding a transaction will save you all transaction fees, whereas issuing a refund will get you a portion of the fees back.
Call us with additional questions at 888-444-3422.
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