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POS Transactions – 1.13 Reversals & Adjustments

POS Transactions – 1.13 Reversals & Adjustments

Detailed Guide to Handling Transaction Reversals, Voids, and Adjustments in POS Systems

At US Capital Private Bank, understanding how to properly reverse or adjust POS transactions is essential to maintain accuracy, client trust, and compliance with sovereign trust accounting protocols. This article breaks down the step-by-step process and implications of reversals and adjustments.

🔄 What Are Transaction Reversals & Adjustments?

  • 🔁 Reversal: Cancelling a transaction that has been authorized but not yet settled.

  • 📝 Void: Similar to reversal; usually refers to cancelling a transaction before batch settlement.

  • ✏️ Adjustment: Modifying the amount of a previously settled transaction, often used for refunds or corrections.

⚙️ When to Use Reversals & Adjustments

  • Customer cancels purchase before shipment or service delivery.

  • Merchant error in transaction amount entry.

  • Fraudulent or duplicate transactions detected.

  • Partial refunds or discounts are applied post-sale.

🛠️ Detailed Process for Reversals

  1. 🏪 Initiate Reversal: Merchant selects the transaction to reverse in the POS system.

  2. 🔐 Authorization Check: System verifies transaction eligibility (must be unsettled).

  3. 📡 Reversal Request Sent: POS terminal sends reversal request to payment processor.

  4. 🏦 Issuer Bank Processing: Issuer verifies transaction status and releases hold on funds.

  5. ✅ Confirmation: Processor confirms reversal; funds are released back to cardholder’s available balance.

🛠️ Detailed Process for Adjustments

  1. 🧾 Adjustment Request: Merchant requests amount change through the POS or back-office system.

  2. 🔄 Capture & Authorization: For increased amounts, re-authorization may be required.

  3. 💰 Settlement: Adjusted amount is settled during batch processing.

  4. 📜 Ledger Update: Trust accounts reflect the adjustment, ensuring sovereign accounting integrity.

🛡️ Implications for Trust-Based Accounts

  • Reversals and adjustments trigger updates in client trust ledgers.

  • Maintain audit trails respecting privacy and sovereignty.

  • Require dual authorization in high-value or sensitive trust transactions.

  • Automated alerts notify clients of changes to balances or transaction status.

🌐 Industry Best Practices

  • Process reversals promptly to avoid client dissatisfaction.

  • Document all adjustments thoroughly.

  • Use secure authentication for all reversal/adjustment requests.

  • Coordinate with acquiring banks and card networks to ensure compliance.

📚 Additional Resources

Further reading on transaction management and sovereign trust accounting:

🔗 https://sedm.org — Sovereignty Education and Defense Ministry

📩 Contact US Capital Private Bank

For assistance with transaction reversals or trust account adjustments:

📧 Email: [email protected]
🌐 Website: https://uscapitalprivatebank.com
📞 Phone: +971529926005

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