What is a clearing reversal?

A clearing reversal is specifically defined as a VisaNet transaction that negates a previously sent transaction. This type of transaction is necessary when a mistake has been made in a previous transaction, allowing for the correction of that error by effectively canceling the original transaction within the VisaNet system. This helps ensure that the financial records remain accurate and reflects the true state of accounts.

In the context of transaction processing, a clearing reversal serves as a mechanism to maintain the integrity of transaction data across the network. It allows financial institutions to correct errors without altering the original transaction logs, which is critical for reconciliation processes.

While options like adding credit back to a customer's account, initiating a refund process, or providing a final settlement statement are relevant in payment processes, they do not accurately capture the specific role of a clearing reversal within the transaction lifecycle managed by VisaNet. These options can represent different aspects of transaction management and customer service but do not define a clearing reversal as a direct negation of a prior transaction in the network.