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zero percent tip?

myfrogger

By myfrogger
in VISA MC policies

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myfrogger

myfrogger

Posted
Posted

I read about the zero percent tip authorization policy for resturant merchants.

 

I was curious if hotels have a similar policy.

 

I hate going to a hotel and having an authorization for 10-1000% more than my stay.

 

I once stayed at a $50 hotl and had a $500 hold!


GEORGE

GEORGE

Posted
Posted (edited)
I read about the zero percent tip authorization policy for resturant merchants.

 

I was curious if hotels have a similar policy.

 

I hate going to a hotel and having an authorization for 10-1000% more than my stay.

 

I once stayed at a $50 hotl and had a $500 hold!

$200 MAY BE HIGH...

 

You "MAY" have ROOM SERVICE...

 

You "MAY" make some LD CALLS...

 

You "MAY" have RELATIVES (UNEXPECTEDLY) show up and stay at $5.00/PERSON/NIGHT (FOR THE ROLL-A-WAYS)

DRINKS AT THE BAR CHARGED TO YOUR ROOM

BOTTLE OF THE "BEST" CHAMPAGNE FOR YOUR COMPANY

 

YOU "MAY" WANT TO STAY FOR ANOTHER COUPLE OF DAYS...

 

EVEN THOUGH THEY CAN RE-AUTHORIZE AT ANY TIME AFTER THE CHECK-IN...

 

(THEY WANT THE "JUST-IN-CASE" MONEY)

 

ALWAYS HAVE A BACK-UP or TWO or MORE (not sure you need 10 on vacation)

 

When I went to OR & ME & HI I checked in with one card...and checked out with another...(in the days of lower limits)

 

Had another card for the car...

 

Now I can put the TICKETS...CARS...HOTELS...ALL THE FOOD...EXTRAS...ALL THE "HOLDS" AND STILL HAVE LESS THAN 10% USED ON A COUPLE OF CARDS...

 

BIGGER IS BETTER SOME TIMES

Edited by GEORGE
myfrogger

myfrogger

Posted
  • Author
Posted

It was certainly a surprise for me when I decided to use a debit card for the hotel purchase and all of a sudden $500 was missing! Luckily I had enough money in there.

GEORGE

GEORGE

Posted
Posted
It was certainly a surprise for me when I decided to use a debit card for the hotel purchase and all of a sudden $500 was missing!  Luckily I had enough money in there.

 

 

no big deal they will give it back when you check out

"PRE-AUTHORIZE" $500.00

"CHECK-OUT" FINAL BILL $57.18

 

$500.00 DROPS OFF (PROBABLY WITH-IN A FEW DAYS...WEEK MAX)

 

THAT IS WHY I CHECKED-IN WITH ONE CARD AND CHECKED OUT WITH ANOTHER...

 

They "CAN" change the original $500.00 like you add a "TIP" at the restaurant...LIKE A TIP IN REVERSE

 

FOLIO# 4590 $500.00

FOLIO# 4590 AUDIT $57.18

 

(changed the price)

Uncle Leo

Uncle Leo

Posted
Posted
It was certainly a surprise for me when I decided to use a debit card for the hotel purchase and all of a sudden $500 was missing!  Luckily I had enough money in there.

 

no big deal they will give it back when you check out

 

My credit union had a policy for years of continuing to hold the "hold" for a full week if the final charge did not match exactly to the cent. For example, hold $500, charge $499.99. Your available credit was down $999.99 for a week, only half of which was really legitimate. Even if you had the merchant call and authorize a release, which I did once, they would refuse to release it.

hurricanesfans27

hurricanesfans27

Posted
Posted
It was certainly a surprise for me when I decided to use a debit card for the hotel purchase and all of a sudden $500 was missing!  Luckily I had enough money in there.

 

no big deal they will give it back when you check out

 

My credit union had a policy for years of continuing to hold the "hold" for a full week if the final charge did not match exactly to the cent. For example, hold $500, charge $499.99. Your available credit was down $999.99 for a week, only half of which was really legitimate. Even if you had the merchant call and authorize a release, which I did once, they would refuse to release it.

 

 

mine used to do the same thing. they stopped about a year ago.. too many complaints by their customers

  • 2 weeks later...
johnr

johnr

Posted
Posted

GEORGE said...

 

When I went to OR & ME & HI I checked in with one card...and checked out with another...(in the days of lower limits)

 

Had another card for the car...

 

What order did you do that trip in? Oregon and Maine, and Hawaii, must have been a heck of a vacation. With today's gas prices, even someone with YOUR limits would need another card... :P

 

John

 

 

p.s. I think I saw a movuie about that once. Guy checked in with one, checked out with another. and sent his wife a postcard... :blink:

johnr

johnr

Posted
Posted

myfrogger said:

 

It was certainly a surprise for me when I decided to use a debit card for the hotel purchase and all of a sudden $500 was missing!  Luckily I had enough money in there.

 

That's what got my wife and I "back into" credit. We had gone close to 10 years without credit cards, just debit cards. I think I had fallen for some story she told me about some guy on the radio who said credit is bad.... :P Anyway, when we went on a trip or bought something expensive, we'd just call the bank and tell them we wanted the $500/day debit limit raised for a couple of days or whatever. One day the cashier said, they told me they're gonna have to charge you to do that, you ought to just get a credit card.... :blink:

 

and here I am....

 

John

GEORGE

GEORGE

Posted
Posted
GEORGE said...

 

When I went to OR & ME & HI I checked in with one card...and checked out with another...(in the days of lower limits)

 

Had another card for the car...

 

What order did you do that trip in? Oregon and Maine, and Hawaii, must have been a heck of a vacation. With today's gas prices, even someone with YOUR limits would need another card... :P

 

John

 

 

p.s. I think I saw a movuie about that once. Guy checked in with one, checked out with another. and sent his wife a postcard... :blink:

DIFFERENT TIMES AND I DON'T DRIVE OUT OF STATE (except I HAVE DRIVEN TO WY)

 

"IF" I CAN'T FLY...I DON'T GO!!!

Uncle Leo

Uncle Leo

Posted
Posted

Checking my bank statement online and noticed that a purchase where I used my debit VISA (signed as a credit purchase) at a restaurant had the usual 20% added to the authorization. Now that I know this is a violation of the merchant agreement, let alone dipping into MY money, who should I complain to? The bank, or VISA?

GEORGE

GEORGE

Posted
Posted
Checking my bank statement online and noticed that a purchase where I used my debit VISA (signed as a credit purchase) at a restaurant had the usual 20% added to the authorization.  Now that I know this is a violation of the merchant agreement, let alone dipping into MY money, who should I complain to?  The bank, or VISA?

1-800-VISA-911

USA VISA

YOUR CREDIT CARD COMPANY (BANK)

BBQ123

BBQ123

Posted
Posted (edited)
Checking my bank statement online and noticed that a purchase where I used my debit VISA (signed as a credit purchase) at a restaurant had the usual 20% added to the authorization.  Now that I know this is a violation of the merchant agreement, let alone dipping into MY money, who should I complain to?  The bank, or VISA?

There is no violation... they are allowed to authorize for more than the ammount. If you go to a resturant and it is $100, they can authorize for $120 so that if you tip $15, it will go through... If they authorize $100, and then you add $15 tip, it might not go through (say you are 105 dollars from the limit)

 

If they authorize $120, and it is $115, there will be an adjustment in a coiple days.

Edited by BBQ123
Uncle Leo

Uncle Leo

Posted
Posted
Checking my bank statement online and noticed that a purchase where I used my debit VISA (signed as a credit purchase) at a restaurant had the usual 20% added to the authorization.  Now that I know this is a violation of the merchant agreement, let alone dipping into MY money, who should I complain to?  The bank, or VISA?

There is no violation... they are allowed to authorize for more than the ammount. If you go to a resturant and it is $100, they can authorize for $120 so that if you tip $15, it will go through... If they authorize $100, and then you add $15 tip, it might not go through (say you are 105 dollars from the limit)

 

If they authorize $120, and it is $115, there will be an adjustment in a coiple days.

 

Yes, there was a violation. It is indeed against the rules to authorize for more than the price at a resturant.

 

http://tinyurl.com/bq3ug

 

You might want to update your merchant rules section of your signature. This is from the merchant agreement as posted at the link on www.usa.visa.com above. You will need to click on the "rules for via merchants" link to the right of the screen. I got an error trying to use the link, but I could download the pdf file using "save target as".

 

Numbered pages 10 and 11 of the merchant agreement have the following:

 

Dollar Minimums and Maximums

Always honor valid Visa cards, in your acceptance category, regardless of the dollar amount of the purchase. Imposing minimum or maximum purchase amounts is a violation.

 

No Surcharging

Always treat Visa transactions like any other transaction; that is, you may not impose any surcharge on a Visa transaction. You may, however, offer a discount for cash transactions, provided that the offer is clearly disclosed to customers and the cash price is presented as a discount from the standard price charged for all other forms of payment.

 

Taxes

Include any required taxes in the total transaction amount. Do not collect taxes separately in cash. This policy reflects the needs of the many Visa cardholders who must have written records of the taxes they pay for goods and services.

 

Split Sales

Prepare one sales receipt per transaction, using the full transaction amount.  Merchants are not allowed to split the cost of a single transaction between two or more sales receipts, using a single cardholder account, in order to avoid authorization limits.

 

Laundering

Deposit transactions only for your own business. Depositing transactions for a business that does not have a valid merchant agreement is called laundering or factoring. Laundering is not allowed; it is a form of fraud associated with high chargeback rates and the potential for forcing merchants out of business.

 

Zero-Percent Tip

For restaurant transactions with a Visa credit or debit card, authorize only for the known amount, not the transaction amount plus estimated tip.  Cardholders now have the ability to check their credit or checking accounts almost instantaneously via phone, the Internet, or an ATM. Consequently, an authorization that includes an estimated tip can reduce a cardholder’s available funds or credit by an unrecognizable or unexpected amount.  This kind of transaction may occur if a cardholder leaves a cash tip or adds a tip that is less than the estimated amount used for authorization; for example, if the restaurant authorizes for an estimated 20 percent tip, but the customer adds on only 15 percent.

 

No Cash Refunds

Complete a Visa credit receipt for merchandise returns or adjustments. Do not provide cash refunds for returned merchandise originally purchased with a Visa card. Visa does not permit cash refunds for any credit or debit card transaction. By issuing credits, you protect your customers from individuals who might fraudulently make a purchase on their Visa account and then return the merchandise for cash.

 

Pre-authorizations at a gas pump are considered another matter, and are allowed. Logic would suggest that a gas pre-authorization is for an as yet undetermined purchase, whereas in a restaurant the purchase price has been determined. In a technical sense, a tip is a separate and distinct gift and not part of the meal or purchase. It is also, technically, a matter between the wait staff and the customer, not the business.

TampaDude

TampaDude

Posted
Posted
Checking my bank statement online and noticed that a purchase where I used my debit VISA (signed as a credit purchase) at a restaurant had the usual 20% added to the authorization.  Now that I know this is a violation of the merchant agreement, let alone dipping into MY money, who should I complain to?  The bank, or VISA?

There is no violation... they are allowed to authorize for more than the ammount. If you go to a resturant and it is $100, they can authorize for $120 so that if you tip $15, it will go through... If they authorize $100, and then you add $15 tip, it might not go through (say you are 105 dollars from the limit)

 

If they authorize $120, and it is $115, there will be an adjustment in a coiple days.

 

That's the way I figured it...I've seen the extra 20% tacked on the authorization amount at some restaurants...while that may or may not be a violation, it does make sense...the merchant wants to ensure the charge is not rejected, and the customer doesn't have to worry about a surprise overlimit fee.

 

If you are that worried about not being able to use that 20% for a few days, then follow GEORGE'S advice: always have a backup or TWO or TEN... :grin:

Uncle Leo

Uncle Leo

Posted
Posted

There is no violation... they are allowed to authorize for more than the ammount.  If you go to a resturant and it is $100, they can authorize for $120 so that if you tip $15, it will go through...  If they authorize $100, and then you add $15 tip, it might not go through (say you are 105 dollars from the limit)

 

If they authorize $120, and it is $115, there will be an adjustment in a coiple days.

 

That's the way I figured it...I've seen the extra 20% tacked on the authorization amount at some restaurants...while that may or may not be a violation, it does make sense...the merchant wants to ensure the charge is not rejected, and the customer doesn't have to worry about a surprise overlimit fee.

 

Did you miss the post right above yours? It is a violation.

GEORGE

GEORGE

Posted
Posted
Checking my bank statement online and noticed that a purchase where I used my debit VISA (signed as a credit purchase) at a restaurant had the usual 20% added to the authorization.  Now that I know this is a violation of the merchant agreement, let alone dipping into MY money, who should I complain to?  The bank, or VISA?

There is no violation... they are allowed to authorize for more than the ammount. If you go to a resturant and it is $100, they can authorize for $120 so that if you tip $15, it will go through... If they authorize $100, and then you add $15 tip, it might not go through (say you are 105 dollars from the limit)

 

If they authorize $120, and it is $115, there will be an adjustment in a coiple days.

VIOLATION

BBQ123

BBQ123

Posted
Posted
Checking my bank statement online and noticed that a purchase where I used my debit VISA (signed as a credit purchase) at a restaurant had the usual 20% added to the authorization.  Now that I know this is a violation of the merchant agreement, let alone dipping into MY money, who should I complain to?  The bank, or VISA?

There is no violation... they are allowed to authorize for more than the ammount. If you go to a resturant and it is $100, they can authorize for $120 so that if you tip $15, it will go through... If they authorize $100, and then you add $15 tip, it might not go through (say you are 105 dollars from the limit)

 

If they authorize $120, and it is $115, there will be an adjustment in a coiple days.

VIOLATION

 

If this is a violation there are A LOT of merchants in violation... mostly restaruants.

afilatreau

afilatreau

Posted
Posted

We have no control over our restaurant authorizing an automatic 20% for a tip. It's the company we use for our transactions that does it. I have people call every week telling me that their online banking is saying that we overcharged them. I tell them to wait a couple days and if it doesn't correct itself, then to call us back. I have yet to receive a call...

 

I think it sucks that they do it, but my opinion won't change anything unless our company gets a fine for it, I guess.

Uncle Leo

Uncle Leo

Posted
Posted
We have no control over our restaurant authorizing an automatic 20% for a tip. It's the company we use for our transactions that does it. I have people call every week telling me that their online banking is saying that we overcharged them. I tell them to wait a couple days and if it doesn't correct itself, then to call us back. I have yet to receive a call...

 

I think it sucks that they do it, but my opinion won't change anything unless our company gets a fine for it, I guess.

 

What you're saying is that it's not important to you (read: your company) unless it costs you directly. No offense intended, but that's a crappy attitude. I don't buy that nothing can be done about it, either. Something can be done, and would be done, with the proper motivation.

GEORGE

GEORGE

Posted
Posted
We have no control over our restaurant authorizing an automatic 20% for a tip. It's the company we use for our transactions that does it. I have people call every week telling me that their online banking is saying that we overcharged them. I tell them to wait a couple days and if it doesn't correct itself, then to call us back. I have yet to receive a call...

 

I think it sucks that they do it, but my opinion won't change anything unless our company gets a fine for it, I guess.

THE 20% IS PROGRAMMED INTO YOUR AUTHORIZATION TERMINAL IS EASY TO REMOVE BY THE COMPANY WHO PROGRAMMED IT THAT WAY...

afilatreau

afilatreau

Posted
Posted
We have no control over our restaurant authorizing an automatic 20% for a tip. It's the company we use for our transactions that does it. I have people call every week telling me that their online banking is saying that we overcharged them. I tell them to wait a couple days and if it doesn't correct itself, then to call us back. I have yet to receive a call...

 

I think it sucks that they do it, but my opinion won't change anything unless our company gets a fine for it, I guess.

 

What you're saying is that it's not important to you (read: your company) unless it costs you directly. No offense intended, but that's a crappy attitude. I don't buy that nothing can be done about it, either. Something can be done, and would be done, with the proper motivation.

 

No, sorry if you took it the wrong way but, I don't have any control over our credit card authorizations. I am not involved in the decisions that they make in the business. I don't own it, nor do I have the authority to change it. I am just a piddly little manager and even if I were to say something to someone higher up, nothing would be done about it. I should of clarified more, I apologize. :(

Uncle Leo

Uncle Leo

Posted
Posted
No, sorry if you took it the wrong way but, I don't have any control over our credit card authorizations. I am not involved in the decisions that they make in the business. I don't own it, nor do I have the authority to change it. I am just a piddly little manager and even if I were to say something to someone higher up, nothing would be done about it. I should of clarified more, I apologize. :P

 

No prob. I just meant that someone, somewhere in the company, does have the authoity to have it changed and it can be done.

  • 2 years later...
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