Both transactions create the reverse of a transaction that has already been made. Reversing or cancelling (voiding) a transaction zeroes out its financial effect.
Cancellation (void): is a transaction triggered through the POS/virtual POS or through screens designed in the bank's system. It creates a record that is the exact opposite of the original transaction.
For example: you made a purchase at a store. While the transaction amount was 55 TRY, the merchant representative started a transaction for 550 TRY, and you noticed this on the transaction slip. In that case, if you report this to the store representative, the store representative goes into the Cancel menu on the POS and cancels this transaction. The 550 TRY Sale and Sale Cancellation transactions won't appear on the credit card statement, but you will see these transactions in the card's authorization activity.
Reversal: is the systemic execution of the opposite of a transaction. There is no user action that triggers a reversal. A few possible reasons for a transaction to be reversed:
- The issuing bank not returning the transaction result within the expected time (usually 20 sec.)
- The POS or ATM losing its connection during the transaction