In refunds, what is a reversal?

In refunds, what is a reversal?

• A. The refund amount is added to another charge.
• B. The original charge remains visible with a separate refund.
• C. The original charge disappears.
• D. A new charge is created.

Answer: (C)

A reversal means undoing the original payment so it’s effectively canceled and stops existing as a completed charge. When a refund is processed as a reversal, the original charge disappears rather than simply showing up as a separate refund. This is different from keeping the original charge visible and adding a separate refund record, or from creating a new charge. The reversal approach focuses on removing the initial transaction itself.

A reversal means undoing the original payment so it’s effectively canceled and stops existing as a completed charge. When a refund is processed as a reversal, the original charge disappears rather than simply showing up as a separate refund. This is different from keeping the original charge visible and adding a separate refund record, or from creating a new charge. The reversal approach focuses on removing the initial transaction itself.