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!

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

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.

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...

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 said...



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...

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...

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?

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.

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.

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.

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.

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.

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.

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.