What is a Credit (Reversal / Refund)?

A credit (reversal/refund) is a merchant’s reversal of an authorized transaction (sale) that has been settled.  It's supported by the card issuer, a reversal will immediately ‘undo’ an authorization and return it to the open-to-buy balance on a Cardholder’s account.

Electronic Merchant Systems Payment Processing Glossary :

Defining key payment processing and merchant services industry terms to help business owners make better decisions.




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