Putting Hold on Credit for more than purchase amount

[yorkiemom_2]

I don't know, so maybe someone can enlighten me. Is it within the merchant agreement with visa/mc for a merchant to put a credit card hold on the customers account for more than the purchase price? When the charge actual posts it is correct but for the couple of days its pending it's for more.

 

This happens alot at restaurants. Sometimes the overage is $10 or more until it posts.

[GEORGE]

I don't know, so maybe someone can enlighten me. Is it within the merchant agreement with visa/mc for a merchant to put a credit card hold on the customers account for more than the purchase price? When the charge actual posts it is correct but for the couple of days its pending it's for more.

 

This happens alot at restaurants. Sometimes the overage is $10 or more until it posts.

VIOLATION

 

You can add a tip to the credit card slip BUT they can't PRE-AUTHORIZE what they think you will leave like 10%--20%

[yorkiemom_2]

For instance I had a restaurant bill for my daughter birthday for lets say $90.00 + $10 tip = $100.00.

 

The credit card hold was for $111.+ change until it finally posted for the correct amount that I signed on the cc receipt which was $100.00.

 

This happens alot and I notice it on my check card visa alot, because I'm in my bank website comparing charges in checkbook to credit card holds.

[GEORGE]

For instance I had a restaurant bill for my daughter birthday for lets say $90.00 + $10 tip = $100.00.

 

The credit card hold was for $111.+ change until it finally posted for the correct amount that I signed on the cc receipt which was $100.00.

 

This happens alot and I notice it on my check card visa alot, because I'm in my bank website comparing charges in checkbook to credit card holds.

VIOLATION OF CREDIT CARD POLICY

[yorkiemom_2]

next time I eat at a restaurant, I'm going to ask them if that is their policy. Or should just wait and see if they do it, and then report them to Visa?

[GEORGE]

next time I eat at a restaurant, I'm going to ask them if that is their policy. Or should just wait and see if they do it, and then report them to Visa?

REPORT THEM IF YOU WISH...

 

I never did really worry "IF" they added a "PRE-AUTHORIZED" TIP or not because I don't ever use a card that has a small limit

 

(my lowest is $10,000)

 

I don't "THINK" any place I go to adds an ILLEGAL TIP

 

I ALWAYS LEAVE THE TIP ON THE RECEIPT!!!

 

When I get home I look at the credit card web page and the AVAILABLE BALANCE is lower by the BASE AMOUNT

 

Probably they have a WRONG PROGRAMMING

[BBQ123]

Almost every resturant I know of does this. They authorize 20% extra for tip -- but when it posts, it is only for the ammount you put on the receipt.

 

One place was odd -- the meal was one charge (no extra authorization) -- but the tip was a second, separate charge for $6.50 (what I put on the receipt)

[GEORGE]

Almost every resturant I know of does this. They authorize 20% extra for tip -- but when it posts, it is only for the ammount you put on the receipt.

 

One place was odd -- the meal was one charge (no extra authorization) -- but the tip was a second, separate charge for $6.50 (what I put on the receipt)

THAT IS STRANGE!!!

 

They lost money on that deal since they pay a fee PER TRANSACTION

[GEORGE]

I ALWAYS ROUND UP TO THE NEXT $1.00

 

$35.21 + $5.28 (15%) + $0.51 = $41.00

 

I SEE ANY RESTAURANT THAT DOES NOT END WITH $XX.00 I LOOK AT IT REAL CLOSE!!!

 

(assuming it is tip restaurant)

[Uncle Leo]

I ALWAYS ROUND UP TO THE NEXT $1.00

 

$35.21 + $5.28 (15%) + $0.51 = $41.00

 

I SEE ANY RESTAURANT THAT DOES NOT END WITH $XX.00 I LOOK AT IT REAL CLOSE!!!

 

(assuming it is tip restaurant)

Interesting. I do the same thing. Determine what the tip should be (not always 15%, sometimes less, sometimes more), then round up to the next even dollar.

[BBQ123]

I tend to do that too... the round up to the nearest dollar thing.

 

Do you tip on the pre-tax or post-tax ammount?

[GEORGE]

I tend to do that too... the round up to the nearest dollar thing.

 

Do you tip on the pre-tax or post-tax ammount?

It doesn't matter much...

 

It is a waste of time to - out the tax

 

Sometimes it doesn't have a PRE-TAX subtotal

[USPSA-Shooter]

For instance I had a restaurant bill for my daughter birthday for lets say $90.00 + $10 tip = $100.00.

 

The credit card hold was for $111.+ change until it finally posted for the correct amount that I signed on the cc receipt which was $100.00.

 

This happens alot and I notice it on my check card visa alot, because I'm in my bank website comparing charges in checkbook to credit card holds.

 

Check with your bank, they might be placeing a hold on it. This happens all the time with Pay-At-The-Pump systems at gas stations. Some of the oil companies have gone so far as to post signs at the pumps telling customers that the gas station is NOT putting a hold on any monies in their customers accounts, the BANK is.

 

This happens mostly with Visa/MC Check Cards, although we have had people say that Amex does it too.

 

YMMV

[GEORGE]

For instance I had a restaurant bill for my daughter birthday for lets say $90.00 + $10 tip = $100.00.

 

The credit card hold was for $111.+ change until it finally posted for the correct amount that I signed on the cc receipt which was $100.00.

 

This happens alot and I notice it on my check card visa alot, because I'm in my bank website comparing charges in checkbook to credit card holds.

 

Check with your bank, they might be placeing a hold on it. This happens all the time with Pay-At-The-Pump systems at gas stations. Some of the oil companies have gone so far as to post signs at the pumps telling customers that the gas station is NOT putting a hold on any monies in their customers accounts, the BANK is.

 

This happens mostly with Visa/MC Check Cards, although we have had people say that Amex does it too.

 

YMMV

THE "BANK" IS BECAUSE THE STATION TELLS THEM TO

 

Since I don't have any "TOY" cards I don't really care what they hold as long as it drops off in 1--5 days

[USPSA-Shooter]

For instance I had a restaurant bill for my daughter birthday for lets say $90.00 + $10 tip = $100.00.

 

The credit card hold was for $111.+ change until it finally posted for the correct amount that I signed on the cc receipt which was $100.00.

 

This happens alot and I notice it on my check card visa alot, because I'm in my bank website comparing charges in checkbook to credit card holds.

 

Check with your bank, they might be placeing a hold on it. This happens all the time with Pay-At-The-Pump systems at gas stations. Some of the oil companies have gone so far as to post signs at the pumps telling customers that the gas station is NOT putting a hold on any monies in their customers accounts, the BANK is.

 

This happens mostly with Visa/MC Check Cards, although we have had people say that Amex does it too.

 

YMMV

THE "BANK" IS BECAUSE THE STATION TELLS THEM TO

 

Since I don't have any "TOY" cards I don't really care what they hold as long as it drops off in 1--5 days

 

George, the station does not tell them to, the bank does it on their own.

[Seabee]

George, the station does not tell them to, the bank does it on their own.

 

 

I'm confused. It has been my understanding that the hold normally shows up on gas and restaurant transactions. If the bank were doing it themselves wouldn't it show up on either all transactions or no transactions? It seems to me there must be something about gas and food that causes the bank to do what it does. It may not be the merchant by themselves, but I don't see how they can blame it solely on the bank.

[USPSA-Shooter]

George, the station does not tell them to, the bank does it on their own.

 

 

I'm confused. It has been my understanding that the hold normally shows up on gas and restaurant transactions. If the bank were doing it themselves wouldn't it show up on either all transactions or no transactions? It seems to me there must be something about gas and food that causes the bank to do what it does. It may not be the merchant by themselves, but I don't see how they can blame it solely on the bank.

 

The pump will pre-authorize itself for $50-$75. For some reason, the bank holds that max amount until the transaction posts.

 

To get around the hold, go inside with check cards, don't use the pay at the pump.

Edited March 10, 2006 by USPSA-Shooter

[Uncle Leo]

I tend to do that too... the round up to the nearest dollar thing.

 

Do you tip on the pre-tax or post-tax ammount?

I tend to tip on the post-tax amount. Not for any particular reason, though, it's just easier.

 

I did have a strange situation last month. Went to this restaurant near Chicago that I like. I added the tip to the credit card bill like I normally do. When I got the statement in the mail, only the meal was charged to me. First time that's ever happened.

Edited March 10, 2006 by playthecreditgame

[BBQ123]

With gas...

 

Gas station pre-authorizes $50 or $75.

 

Bank will hold that $50 or $75 until the transaction posts. You are only deducted the actual amount.

 

This is to help stop you from overdrafting your account with your check card.

 

I'm starting to consider my $500 AmEx a "toy" -- I hardly use it because my Citi card has rewards. Not to mention 3x the credit limit.

Edited March 10, 2006 by BBQ123

[cljohnr]

I've never seen anything to indicate that this is a violation of CC policy. Often, the CC processing terminals automatically do it. The restaurant may not even know.

 

http://www.bankrate.com/brm/news/cc/20010821a.asp

 

...

"Holds occur any time the end amount of a purchase is not known at the time a card is authorized," says Kenny Thomas, director of corporate relations at Visa U.S.A.

...

"The hold is released as soon as the final transaction is cleared and that's usually within 24 hours," Thomas says. "Visa policy requires merchant holds last no more than 72 hours after the final transaction takes place."

...

"If a hold causes them a problem, they should discuss that with the issuing bank and ask them for relief on the fees," Thomas says.

[GEORGE]

For instance I had a restaurant bill for my daughter birthday for lets say $90.00 + $10 tip = $100.00.

 

The credit card hold was for $111.+ change until it finally posted for the correct amount that I signed on the cc receipt which was $100.00.

 

This happens alot and I notice it on my check card visa alot, because I'm in my bank website comparing charges in checkbook to credit card holds.

 

Check with your bank, they might be placeing a hold on it. This happens all the time with Pay-At-The-Pump systems at gas stations. Some of the oil companies have gone so far as to post signs at the pumps telling customers that the gas station is NOT putting a hold on any monies in their customers accounts, the BANK is.

 

This happens mostly with Visa/MC Check Cards, although we have had people say that Amex does it too.

 

YMMV

THE "BANK" IS BECAUSE THE STATION TELLS THEM TO

 

Since I don't have any "TOY" cards I don't really care what they hold as long as it drops off in 1--5 days

 

George, the station does not tell them to, the bank does it on their own.

YOU KNOW THIS HOW???

 

IS IT A FACT???

[GEORGE]

I've never seen anything to indicate that this is a violation of CC policy. Often, the CC processing terminals automatically do it. The restaurant may not even know.

 

http://www.bankrate.com/brm/news/cc/20010821a.asp

 

...

"Holds occur any time the end amount of a purchase is not known at the time a card is authorized," says Kenny Thomas, director of corporate relations at Visa U.S.A.

...

"The hold is released as soon as the final transaction is cleared and that's usually within 24 hours," Thomas says. "Visa policy requires merchant holds last no more than 72 hours after the final transaction takes place."

...

"If a hold causes them a problem, they should discuss that with the issuing bank and ask them for relief on the fees," Thomas says.

HOMEWORK

 

CREDIT CARD VIOLATION!!!!!!

[Uncle Leo]

I've never seen anything to indicate that this is a violation of CC policy. Often, the CC processing terminals automatically do it. The restaurant may not even know.

 

http://www.bankrate.com/brm/news/cc/20010821a.asp

 

...

"Holds occur any time the end amount of a purchase is not known at the time a card is authorized," says Kenny Thomas, director of corporate relations at Visa U.S.A.

...

"The hold is released as soon as the final transaction is cleared and that's usually within 24 hours," Thomas says. "Visa policy requires merchant holds last no more than 72 hours after the final transaction takes place."

...

"If a hold causes them a problem, they should discuss that with the issuing bank and ask them for relief on the fees," Thomas says.

 

 

It is true that quite often a restaurant's machine may be pre-programmed and they may not even know, but it is still a violation. It is indeed against the rules to authorize for more than the price at a resturant. This is from the merchant agreement as posted at the link on www.usa.visa.com.

 

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.

 

Colored emphasis mine. They very clearly specify restaurant transactions. Pre-authorizations at a gas pumps and hotels, etc., 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, and is only added as a convenience. It is also, technically, a matter between the wait staff and the customer, not the business.

[GEORGE]

ZERO-PERCENT TIP PRE-AUTHORIZATIONS

 

Merchants should not estimate transaction amounts. For restaurant merchants, in particular, this means debit or credit card tranactions should be authorized only for the known amount of the check. Do not add on an estimated tip.

 

It goes on but I have to type every single word (VISA.COM) and I don't get paid to do this HOMEWORK

[GEORGE]

For instance I had a restaurant bill for my daughter birthday for lets say $90.00 + $10 tip = $100.00.

 

The credit card hold was for $111.+ change until it finally posted for the correct amount that I signed on the cc receipt which was $100.00.

 

This happens alot and I notice it on my check card visa alot, because I'm in my bank website comparing charges in checkbook to credit card holds.

 

Check with your bank, they might be placeing a hold on it. This happens all the time with Pay-At-The-Pump systems at gas stations. Some of the oil companies have gone so far as to post signs at the pumps telling customers that the gas station is NOT putting a hold on any monies in their customers accounts, the BANK is.

 

This happens mostly with Visa/MC Check Cards, although we have had people say that Amex does it too.

 

YMMV

THE "BANK" IS BECAUSE THE STATION TELLS THEM TO

 

Since I don't have any "TOY" cards I don't really care what they hold as long as it drops off in 1--5 days

 

George, the station does not tell them to, the bank does it on their own.

"IF" THE BANK TELLS THEM TO WHY DO I GET HOLDS OF $1...$50...$75...$100 ON THE SAME CARD CARD???