Authorization Reversal
Definition
An authorization reversal requests release of an uncaptured card hold; a refund returns a captured payment.
An authorization reversal requests cancellation or reduction of an uncaptured card authorization hold. It releases an amount no longer needed for capture. A refund instead returns a captured payment; PSP operation names and release timing vary.
An authorization reversal tells the issuer that all or part of an authorization is no longer needed. It is relevant when an order is cancelled before capture or the final bill is smaller than the hold.
Reversal, void and refund
An uncaptured hold earmarks available funds or credit; cancelling it does not send a settled payment back. A void often describes the merchant's cancellation operation. A refund applies after capture, so settlement need not already have completed before the provider accepts a refund request.
PSP API names need care: Adyen's reversal endpoint can cancel or refund depending on capture state. That combined API operation is broader than the authorization reversal defined here.
What to check before telling the customer
Illustrative example: an order has a $100 authorization and is cancelled before capture. Submit the supported cancellation operation against the original payment, then check its outcome. Do not treat an accepted API request as proof that the customer's available balance has already changed. Confirm capture state, cancellation success and the issuer's hold-release handling with your provider.
See the payment lifecycle guide for the surrounding steps.
Sources and content review
Content reviewed . See our editorial policy.
- Adyen: Cancel
Cancellation is for uncaptured payments; the outcome is reported separately. The documentation also distinguishes the combined reversal endpoint.
Related terms
Authorization
Authorization is the process in which an issuer or payment-method provider appro...
Capture
Capture is a merchant or payment provider instruction to submit all or part of a...
Partial Authorization
A partial authorization occurs when an issuer approves less than the amount requ...
Pre-Authorization
A pre-authorization is a card authorization obtained before the final amount is ...
Void
A void is a provider's operation for cancelling or reversing a card payment befo...