How to Handle Refunds And Voids With A Credit Card Machine?

22 minutes read

When processing refunds and voids with a credit card machine, it is important to understand the difference between the two. A refund occurs when a transaction has already been completed and the customer is requesting their money back. To process a refund, you will need to access the original transaction through the credit card terminal and then choose the refund option. The funds will then be returned to the customer's credit card.


On the other hand, a void occurs when a transaction has not been completed and the customer wants to cancel the purchase. To void a transaction, you can typically do so directly through the credit card terminal before finalizing the sale. This allows you to cancel the transaction without charging the customer's card.


It is important to follow the proper procedures for refunds and voids to ensure accurate record-keeping and to avoid any potential issues with chargebacks. Make sure to communicate clearly with customers about your refund and void policies to provide a positive experience.

Best Credit Card Machine For Small Business in 2024

1
Shopify POS Go - Mobile Point of Sale Machine & System for Retail, Small Business - All-in-One Credit Card Reader, Terminal, Barcode Scanner, POS Software Device

Rating is 5 out of 5

Shopify POS Go - Mobile Point of Sale Machine & System for Retail, Small Business - All-in-One Credit Card Reader, Terminal, Barcode Scanner, POS Software Device

  • ALL-IN-ONE DEVICE – Designed for efficient, quick, user-friendly in-store transactions, this compact device acts as a complete POS terminal, barcode scanner, and card reader. Accept all payment types including cash, credit or debit cards, and digital wallets.
  • MOBILE CHECKOUTS - Close sales anywhere with this mobile wireless machine. Get everything you need to check out customers in the palm of your hand from the built-in barcode scanner to card reader, WiFi connectivity, and long battery life.
  • USER-FRIENDLY FEATURES - The touchscreen is easy to use and read, with a 5.5" HD display using strong Gorilla Glass 5. The barcode scanner and tap, chip, and swipe card reader functions are intuitive and powerful for quick, smooth operation.
  • SMART BUSINESS MANAGEMENT - Access your entire business from a single device. With this hand-held POS machine you can monitor sales, check inventory levels, update customer profiles, and view analytics.
  • REQUIRES SHOPIFY ACCOUNT - To use the Shopify POS Go, you need to have a Shopify account. New users can sign up for Shopify at shopify.com. Existing Shopify users can start using the Shopify POS Go right away by simply connecting it to your account.
2
Square Register - Powered by Square POS

Rating is 4.9 out of 5

Square Register - Powered by Square POS

  • Start selling right out of the box with payments processing, POS software and powerful hardware designed by Square. No extra tablet, apps or payment terminal required.
  • Accept all major cards at 2.6% + $0.10 per tap, dip, or swipe and get funds in your bank account as fast as the next business day. Plus, with Offline Mode, you can still take payments, even when your Wi-Fi is down.
  • Get expert phone support, protection from eligible chargebacks, and a 2-year limited warranty.
  • Customize your setup with two touchscreen displays: one for you and one for your customers
  • Grow your business with constantly improving point-of-sale software, including the Square Point of Sale app, Square Appointments, Square for Retail, and Square for Restaurants.
  • Plug in optional cash drawers, receipt printers, order ticket printers, or bar code scanners and get up and running instantly.
3
Square Terminal - Credit Card Machine to Accept All Payments | Mobile POS

Rating is 4.8 out of 5

Square Terminal - Credit Card Machine to Accept All Payments | Mobile POS

  • With Square Terminal, you can ring up sales, accept payments, and print receipts, all with one device. Use it at the counter or ring up customers anywhere in your store.
  • Accept all major credit and debit cards and pay one low rate with no hidden fees and no long-term contracts.
  • Process chip cards in just two seconds.
  • Get your money as soon as the next business day.
  • Use it cordlessly with the built-in battery, designed to last all day.
4
SumUp Solo + Printer Bundle - Credit Card Payment Card Reader. Full Touch-Screen Interface with Free SIM Card and Mobile Data (SumUp Solo + Printer)

Rating is 4.7 out of 5

SumUp Solo + Printer Bundle - Credit Card Payment Card Reader. Full Touch-Screen Interface with Free SIM Card and Mobile Data (SumUp Solo + Printer)

  • Issue receipts on-the-go with the lightweight pocket-sized device, and benefit from fast and fully thermal inkless printing with 800 receipts on a single charge.
  • Use the printer as a battery pack to kick in when your Solo’s running out of power. Both the reader and the printer stay ready to go with double fast charging and optimal power distribution.
  • Accept all major payment types from chip and contactless to Google Pay and Apple Pay.
  • View your transaction history, issue refunds and enable smart tipping directly on the device
  • Connect to Wi-Fi or use the free, unlimited data service and enjoy automatic software updates to make sure you’re always ready to take payments
5
Swivel Stand for Pax A35 Credit Card Machine Terminal Pin pad - Complete Kit - Sturdy and Durable - 4.7" Tall, Swivels and Tilts

Rating is 4.6 out of 5

Swivel Stand for Pax A35 Credit Card Machine Terminal Pin pad - Complete Kit - Sturdy and Durable - 4.7" Tall, Swivels and Tilts

  • SWIVEL & TILT FLEXIBILITY: The Stand swivels (Left and Right Turns) 330 degree and Tilts (up and down) 50 degree. Swivel gives the cashier flexibility to turn the device towards him/her to help the customers when needed without going to customer side. The tilt feature will adjust the correct angle to hold the Device based on counter height.
  • PACKAGE INCLUDES: This is a complete kit. The package includes the Base Stand with Back Plate to attach the credit card machine (pre assembled), Mounting Screws, Allen Key and Wrench (tools), Adhesive Glue Pad. You can either screw down on counter surface or use Adhesive Glue Pad where Screw is NOT possible, exable - glass counter.
  • PERFECT HEIGHT: The stand if perfect height of 4.7" for all counter level. It has enough clearance for Card Insert from button which can also be adjusted by tilt feature. Once you have the correct tilt position set, you can use the allen Key and Wrench to tight the screw so it won't tilt down anymore.
  • ADHESIVE GLUE PAD: A adhesive Glue Pad is included in each stand as an option to glue down the stand if the surface cannot use the screw (examble glass or marble). The glue pad is very strong to hold the stand as this is made for this purpose. If you ever need to remove the glue pad in the futire, simple slowly heat up the area (with hair dryer) and use a string/thread to workout to remove.
  • DURABILITY: The Stand is made out of robust mild steel with durable powder coated finish. It is very sturdy and durable.
6
Verifone VX520 Dual Comm Credit Card Machine- with Smart Card Reader

Rating is 4.5 out of 5

Verifone VX520 Dual Comm Credit Card Machine- with Smart Card Reader

  • Combines an ergonomic design, small footprint and unique cable management system
  • VX520 DC w/SC 128/32 MB (Dial/ ETH 128 / 32 MB STK) (non contactless) EMV
  • Part Number: M252-753-03-NAA-3
7
First Data FD150 EMV CTLS Credit Card Terminal with Wells 350 Encryption

Rating is 4.4 out of 5

First Data FD150 EMV CTLS Credit Card Terminal with Wells 350 Encryption

  • Chip Card / EMV / NFC Compatible
8
VeriFone Vx520 EMV CLTS 32MB Credit Card Terminal

Rating is 4.3 out of 5

VeriFone Vx520 EMV CLTS 32MB Credit Card Terminal

  • NO ENCRYPTION FOR DEBIT. NEED PIN PAD TO ATTACH WITH THE DEVICE TO WORK FOR DEBI
  • Verifone VX520 terminal with EMV reader, contactless reader, and dual com modem.
  • PCI COMPLIANT
9
Clover Mini POS System for Small Business, Credit Card Reader Anywhere Machine, Built in Printer - Requires Processing Account Through Advantage POS Store

Rating is 4.2 out of 5

Clover Mini POS System for Small Business, Credit Card Reader Anywhere Machine, Built in Printer - Requires Processing Account Through Advantage POS Store

  • A SMALL, POWERFUL POS FOR TIGHT SPACES: Run your business with the sleek and powerful Mini, a POS that fits in any space. Everything you need is right on the device.
  • LARGER TOUCH SCREEN: The upsized 8" touch screen has plenty of room to confirm orders, complete payments, and manage everything to run your business.
  • ACCEPT POPULAR PAYMENT TYPES: The Clover Mini makes it easy for customers to pay with swipe, dip, or tap. Credit or debit. And contactless payments like Apple Pay, Google Pay, and PayPal/Venmo.
  • START SMALL AND EXPAND AS YOU NEED TO: The Clover Mini works with all other Clover devices and can expand with accessories to build a complete system so your system can grow as your business grows.
  • Payments: Accepts chip, swipe, and contactless payments Screen: 8" LCD color touch screen Receipt printer: Built-in thermal dot receipt printer Security: Clover Security end-to-end encryption Connectivity: Wi-Fi, ethernet, and LTE connectivity Cash drawer: Optional add-on
  • READY OUT OF THE BOX: Comes with a receipt printer — all you need to get to work..-(note) Requires new processing account through Advantage POS Store for this package. Rate match guarantee with current credit card payment processor or flat rate of 2.6% and .10 cents a transaction.
10
symcode New POS PDA Thermal Receipt Printer 5.99" High Resolution and Clear Touch Screen Handheld PDA Printer Mobile POS Machine Terminal Printer Android 8.1 OS Built-in Google Play and NFC

Rating is 4.1 out of 5

symcode New POS PDA Thermal Receipt Printer 5.99" High Resolution and Clear Touch Screen Handheld PDA Printer Mobile POS Machine Terminal Printer Android 8.1 OS Built-in Google Play and NFC

  • Symcode New POS PDA Thermal Receipt Printer,5.99" High Resolution and Clear Touch Screen, 5MP camera and Wifi 5G/4G/3G/2G/GPS connectivity.40MM Diameter Paper Roll Capacity, Support Nano SIM+TF , With NFC card recognition.
  • 58mm POS Thermal Receipt Printer Android 8.1 OS,Usb: Support USB OTG.support developers to debug and use .Deca-core/10 cores MTK.
  • [ Control of Inventory ] This thermal receipt printer helps you keep better control of inventory, sales and profits, deliver tickets to your customers, create users, discounts, products by name, code or barcode and much more!
  • POS PDA Compatible with 99% of Android Apps, e.g. Loyverse(For Retail/Clothing), iREAP(For Retail/Inventory), CasierStock(For Shopping/Inventory Management), Kyte(For Mobile Sales), Pozool(Restaurant/Coffee Shop), allow accept order and print receipt in one POS.
  • Handheld PDA printer comes with Google Play and supports the following software, Shopify, Google Chrome, PDF, Loyverse, iREAP, and Kyte, Support Google Play software download.No need for secondary development.which allows accepting the order and print receipt in one POS , 90mm/s boosts 20% working efficiency.
  • POS Receipt Printer inside 3200mAh 7.6V battery lasts the whole day even in the most demanding situations.Work with android app, make bill printing, mobile payment, ordering, takeaway, queue control, marketing management, make all-in-one POS.
  • Terminal printer POS is portable, 0.7in body, 0.9lb weight , also with a 5.5-inch touch screen, also can scan 1D/2D.QR barcodes by the camera.(The camera mainly decodes 2D codes.and the ability to decode 1D codes is relatively weak) It is a combination of Bluetooth thermal printer and mobile phone, so that you can save your money and space, Widely used in food trucks, cafes, drink & food, pizza, bakery, restaurant, grocery store, fashion & boutique, convenience store, jewelry, carwash.


How to process refunds with a credit card machine?

To process refunds using a credit card machine, follow these steps:

  1. Power on the credit card machine and ensure it is connected to a network.
  2. Access the refund option on the credit card machine. This may be labeled as "Refund," "Return," or something similar.
  3. Enter the amount of the refund that you wish to issue to the customer.
  4. Swipe the customer's credit card or insert the chip card into the machine.
  5. Follow the prompts on the screen to complete the refund transaction. This may include verifying the refund amount, confirming the cardholder's name, and obtaining a signature from the customer if necessary.
  6. Once the transaction is complete, provide the customer with a copy of the refund receipt for their records.
  7. If the credit card machine prompts you to issue a refund receipt for your records, be sure to keep a copy of this receipt for your records.
  8. It is also a good practice to record the refund transaction in your accounting records to keep track of the refund issued.
  9. Finally, ensure that the refund amount is credited back to the customer's credit card account within the designated timeframe set by the credit card issuer.


How to prevent chargebacks when processing refunds with a credit card machine?

  1. Clearly communicate your refund policy to customers before they make a purchase. Make sure they understand the terms and conditions of your refund process.
  2. Process refunds promptly. The longer you wait to issue a refund, the more likely customers are to dispute the charge.
  3. Provide excellent customer service. Respond to customer inquiries and requests in a timely manner and resolve any issues they may have with their purchase.
  4. Keep detailed records of all transactions and refunds. This will help you provide evidence to your payment processor in case of a chargeback dispute.
  5. Use a credit card machine with built-in fraud protection features. This can help detect and prevent fraudulent transactions.
  6. Monitor your chargeback rate regularly. If you notice an increase in chargebacks, investigate the reasons behind them and take action to prevent future disputes.
  7. Consider using a payment gateway that offers chargeback protection services. This can help minimize the financial impact of chargebacks on your business.


How to handle refunds for recurring billing payments with a credit card machine?

  1. Notify the customer: Inform the customer that they are eligible for a refund for their recurring billing payment. This can be done through email, phone call, or in-person communication.
  2. Process the refund: Use your credit card machine to process the refund. This typically involves entering the customer's credit card information and selecting the appropriate refund amount.
  3. Issue the refund: After processing the refund through your credit card machine, make sure to issue the refund back to the customer's credit card account. Provide the customer with a receipt or confirmation of the refund.
  4. Update billing information: Update your records and the customer's billing information to reflect the refund. This may involve adjusting future billing amounts or canceling further recurring payments.
  5. Communicate with the customer: Follow up with the customer to confirm that the refund has been processed successfully. This helps build trust and loyalty with the customer.
  6. Monitor future payments: Keep an eye on future recurring billing payments to ensure that the refund has been properly processed and that there are no further issues. Make any necessary adjustments to prevent future billing errors.


How to avoid errors when processing refunds with a credit card machine?

  1. Ensure that the credit card machine is properly set up and updated with the latest software and firmware to prevent any technical issues.
  2. Double-check the refund amount to make sure it is accurate before processing the transaction.
  3. Verify the customer's identity and ensure they are the rightful owner of the card being refunded to prevent fraudulent transactions.
  4. Always obtain a signed authorization from the cardholder before processing a refund to protect yourself from chargeback disputes.
  5. Follow the proper refund process provided by your credit card machine provider to avoid any errors in processing.
  6. Keep accurate records of all refunds processed, including the transaction details, date, and customer information, to assist in resolving any discrepancies that may arise.
  7. Train your staff on the correct procedures for processing refunds with the credit card machine to minimize errors and ensure consistency in handling transactions.
  8. Regularly monitor your refund transactions and reconcile them with your financial records to identify any discrepancies or unusual activity.


How to track and reconcile refunds in your accounting system?

  1. Create a separate account for refunds in your accounting system. This will help you easily track all refunds and keep them separate from your revenue and expenses.
  2. When issuing a refund to a customer, make sure to record the transaction in your accounting system. Include the date of the refund, the amount refunded, the reason for the refund, and the customer's information.
  3. Reconcile the refunds account regularly to ensure that all refunds have been properly recorded. This involves comparing the total amount of refunds in the account to any refunds that have been issued during the period.
  4. Monitor the refunds account to identify any discrepancies or errors. Investigate any refunds that appear to be missing or incorrect, and make any necessary adjustments to ensure accurate financial reporting.
  5. Keep detailed records of all refunds, including supporting documentation such as refund requests, customer communications, and refund approvals. This will help you provide evidence in case of any audits or disputes.
  6. Review the refunds account periodically to analyze trends and identify any potential issues with customer satisfaction or product quality. Use this information to make improvements to your products or services and reduce the number of refunds in the future.
  7. Consider using accounting software or tools that can automate the tracking and reconciliation of refunds. These tools can help streamline the process and reduce the risk of errors.


What is the procedure for refunding credit card transactions for international customers?

The procedure for refunding credit card transactions for international customers typically involves the following steps:

  1. Contact the payment gateway or processor: Reach out to the payment processor or gateway that processed the initial transaction to initiate the refund process. They will be able to guide you on the specific steps and requirements for international refunds.
  2. Obtain the necessary information: You will need to gather the necessary information for the refund, such as the customer's name, credit card number, and the transaction details. Make sure you have all the relevant information before proceeding with the refund.
  3. Initiate the refund: Once you have all the required information, you can initiate the refund through the payment processor or gateway's system. Follow their instructions for processing international refunds, which may differ from domestic refund processes.
  4. Confirm the refund: Once the refund has been processed, make sure to confirm with the customer that the refund has been completed successfully. Provide them with any relevant refund confirmation details, such as a transaction ID or reference number.
  5. Monitor for the refund to appear: It may take some time for the refund to appear on the customer's credit card statement, especially for international transactions. Monitor the customer's account and follow up if the refund does not appear within the expected timeframe.
  6. Provide customer support: Be available to assist the customer with any questions or concerns they may have regarding the refund process. Offer prompt and helpful customer support to ensure a positive experience for the international customer.
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