A void cancels an item or an entire sale before it is finalised, while a refund returns money to the customer after payment. The two are recorded differently and appear separately in reporting.
In a POS, a void removes the line or order from the sale, often with a reason code. A refund references the original transaction and returns funds to the original tender, such as the same card, or issues store credit or a gift card. Card refunds usually go through the payment terminal or gateway.
Retailers handle returns and exchanges, and hospitality venues handle wrong orders, spoiled items and complaints. Staff may be able to void items themselves but need a manager PIN for larger voids and any refund, so approvals leave a trail. Reason codes make reviews far more useful, because they show whether voids come from keying errors, customer changes or kitchen remakes. Ask staff to select a code every time instead of leaving the field blank.
Excessive or unusual voids and refunds are a known risk for loss and fraud, so review them by user, shift and time on end-of-day reports. Check that refunds to cards go back to the original card, that refunds without a receipt are controlled, and that your return policy meets the Australian Consumer Law. Check current ACCC guidance.
Clear processes protect both customers and the till. Good reporting makes problems visible early.