What is the key difference between a refund and a void?

Refunds and voids are different types of operations when an order is cancelled in a restaurant. Although similar, they are distinct from each other, and in the long run, can affect your sales reports.

A void is a transaction that has not yet been fully completed. For example, when a staff member adds the wrong dish and removes it from the bill before payment is processed. That operation would be termed a void.

A refund is made once the customer has already paid the full amount. The amount is returned to the customer if the order was incorrectly taken. The service was below standard, or there was an overcharge.

For many restaurant POS systems, this distinction is more important than many would realize. Voids almost always indicate human error during service. Refunds basically happen when something big goes wrong, which leads to a bad customer experience.

Refund	Void
Money is returned after payment is completed	The transaction is canceled before payment is completed
Used for complaints, overcharges, or service issues	Used for order-entry mistakes or quick corrections
Appears as refunded revenue in reports	Usually removed from final sales records
Customer sees a refund on their statement	The customer may never see a completed charge