Reversal

Cancellation of an authorization before it is captured, releasing the held funds back to the cardholder's available balance. Distinct from a refund, which reverses an already-settled transaction. Fast (real-time release) and lower-cost than refund processing.

In practice.

Releasing authorizations you will not capture is basic hygiene: it releases the funds held on the customer side, avoids "ghost charge" complaints and keeps your authorization behavior clean with issuers. Gateways can automate reversal of expired or abandoned auths.

Related terms: Authorization · Refund · Capture