Void vs Refund (and what "Reverse Transaction" actually does)

Modified on Sun, Aug 9 at 12:03 AM

When a transaction needs to be reversed, DealerWorks uses a single action called Reverse Transaction. What actually happens behind the scenes — a void or a refund — depends on when you initiate the reversal. This article explains the difference and what to expect.

When Reverse Transaction is available: Only on transactions showing Approved, or Partially Refunded where a refundable balance still remains (the remaining base amount, plus any remaining NCO where applicable). It does not appear on Declined, Error, or Failed transactions — those were never successfully charged, so there's nothing to reverse.

The Core Difference

	Void	Refund
What it is	The charge is cancelled before it settles — it never actually posts to the customer's account.	The charge has already settled. A new, separate credit is issued back to the customer.
When it happens	Same day as the transaction, before end-of-day settlement.	Any time after the transaction has settled (typically the next business day or later).
How long it takes	1–5 business days to drop off the customer's statement (authorization may disappear sooner).	5–10 business days for the credit to appear on the customer's card statement.
In DealerWorks	Transaction status changes to Voided.	Transaction status changes to Refunded.

How "Reverse Transaction" Works in DealerWorks

DealerWorks does not ask you to choose between a void and a refund. When you select Reverse Transaction, DealerWorks determines which one applies based on the transaction's date: a reversal started the same day as the transaction is processed as a void; a reversal started after the transaction date is processed as a refund. You initiate the same action either way — what changes is the final button label, the outcome, and the timeline for when the customer sees the money returned.

1 Go to Reporting → Transactions. Find the transaction and click the three-dot menu on its row. Select Reverse Transaction.
2 A modal will appear. Enter the Reverse Amount (defaults to the full transaction amount — lower it to do a partial reversal). If your dealership requires it, enter a reason in the Credit Memo # field.
3 Click the final action button. On a same-day reversal it reads Void Transaction; on a reversal after the transaction date it reads Refund Transaction. The transaction status updates to Voided or Refunded accordingly.

Note: The Credit Memo # field creates a record of why the reversal was made, for accounting purposes. Whether it's required depends on your dealership's configuration — some dealerships require it, some don't. If it's required at your dealership and left blank, DealerWorks won't let you submit the reversal.

After you submit a reversal

Normally, no additional action is required in DealerWorks right after you submit. For a refund specifically, the status may show Pending briefly while DealerWorks communicates with the customer's bank, then update to Refunded.

In a small number of cases, a refund can come back as Refund Failed instead. If that happens, contact DealerWorks Support for investigation — don't independently retry a pending or failed refund before Accounting or Support has reviewed it.

Important — Reverse Transaction appears on Approved transactions, and on Partially Refunded transactions that still have a refundable balance remaining. It does not appear on Declined, Error, or Failed transactions — those were not successfully charged, so they don't need to be reversed.

Rules by Payment Method

Payment Method	Reversal Rules
Credit / Debit Card	Use Reverse Transaction on an Approved (or partially refunded, with balance remaining) transaction at any time. Same-day = Void Transaction; after the transaction date = Refund Transaction. Card refunds take 5–10 business days to appear.
ACH Direct Debit	Wait 5 business days after the payment date before using Reverse Transaction. The transaction must fully settle before it can be reversed. After reversal, the return takes 3–5 business days.
Cash	To reverse a posted cash payment, use Reverse Transaction if you have the required permissions. Cash payments cannot be voided, even if you have permission to void other payment types. If the Reverse Transaction option is not available to you, follow your dealership’s approved escalation process. Any physical cash handling should also follow your dealership’s normal cash-handling procedures.
Check	To reverse an eligible posted check payment, use Reverse Transaction. DealerWorks follows the standard reversal process for the transaction, including whether the reversal is handled as a void or a refund. If the Reverse Transaction option is not available to you, follow your dealership’s approved escalation process.

What to tell the customer

If voided: "The charge was cancelled before it posted. It may take 1–5 business days to drop off your statement depending on your bank."
If refunded: "A credit has been issued to your card. It typically takes 5–10 business days to appear on your statement."
If ACH: "We need to wait until the payment fully clears before we can process the return. Once we do, it takes 3–5 business days for the funds to return to your account."