Reversal Definition.

Cancellation of an authorization or transaction before clearing: the held amount is released back to the cardholder’s available limit, and no funds move. Distinct from a refund, which comes after settlement and is a separate credit transaction. The schemes require merchants to reverse unused authorizations as a matter of good practice.

See also

→ Authorization→ Capture→ Refund

Where this term appears

GuideThe four-party modelGuidePayments in FranceGuidePayments in ItalyGuidePayments in the UKGuidePayments in the USGuideUS debit and Durbin routingGuidePayments in TaiwanGuidePayments in VietnamGuidePayments in IsraelGuidePayments in the Maghreb and EgyptGuideSelling in app storesGuideTaking payments without staff: vending machines, kiosks, and self-service

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