Refund or refund is an independent operation, independent of the original operation.
The refund operation can be performed at any time. Given that refunds can be made at any time and for any amount, Refund operations attract close attention from the banks ‘ security departments. For this reason, acquirers try to restrict the use of refund operations either by using the authorized person’s administrative card in the TSP before the refund operation itself, or by introducing a mandatory link to the original transaction. Reverse or cancel is not an independent operation and always refers to the original operation. The amount of the cancellation may not match the amount of the original operation, in this case, we talk about partial cancellation( partial reverse), which, for example, is convenient at gas stations. The cancellation amount cannot exceed the amount of the original transaction. It is considered that the cancellation should be carried out on the same financial day as the original transaction was carried out, and if this is not possible, then the refund operation should be carried out. In practice, this rule is often not followed. In order to avoid using Reverse transactions for fraudulent purposes, issuing banks should develop a careful algorithm to find the original transaction, in order to exclude the cancellation of the wrong operation.
