What is reversal transaction?

A reversal transaction is a type of transaction that is used to cancel or reverse a previously initiated transaction. This type of transaction is typically used in situations where an error was made during the original transaction, such as entering incorrect information or processing a duplicate payment. A reversal transaction essentially cancels the original transaction, returning the funds to the account from which they were withdrawn.

Reversal transactions are commonly used in banking and financial services, and many payment service providers have built-in mechanisms for processing reversal transactions. In some cases, a reversal transaction may incur fees or penalties, particularly if the original transaction was subject to fees or penalties. In other cases, a reversal transaction may be processed without any fees or charges.

It is important to note that not all types of transactions can be reversed. For example, once a transaction has been processed on a blockchain network, it cannot be reversed. As such, it is essential to ensure that all details are correct and accurate before initiating a transaction.