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.

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.

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?

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)

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?

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, 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.

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

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.

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.

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.

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

Are you saying that the Director of Corporate Relations at Visa doesn't know their policy? Maybe you should call and turn him in!

Wait, 15% tips? $10 tip on a $90 check? Wow you guys are cheap. I hope you don't eat at the same places regularly...

THANK YOU FOR LAUGHING AT ME!!!

Are you saying that the Director of Corporate Relations at Visa doesn't know their policy? Maybe you should call and turn him in!