CC: Temp charge from a restaurant.

[dxkj]

I received sub-par service from a restaurant the other day, and gave a very bad tip (on my CC)


I noticed today that the temp authorization was for 1.2 * the bill (IE with a 20% tip)

Is this a normal way for them to do it, and i will see the amount is different once it comes through?




I always thought that most people probably dont monitor each individual purchase close enough to catch a mistake like this, and normally I wouldnt either (but i checked because I didnt like this server, and was curious)

 

[Jzero]

You will see the actual amount once the charge is posted. This is a fairly common practice.

 

[labgeek]

Originally posted by: dxkj
I noticed today that the temp authorization was for 1.2 * the bill (IE with a 20% tip)

Is this a normal way for them to do it, and i will see the amount is different once it comes through?

Yep. CC company will often estimate that you'll give 20% when authorizing the card. Then when it posts, it'll correct itself. Watch it in a couple of days...

In the meantime, you won't have access to the difference...

The really fun ones come with the banks that will pre-authorize gasoline purchases at $50...

 

[dxkj]

Originally posted by: Jzero
You will see the actual amount once the charge is posted. This is a fairly common practice.

I understand the practice of doing a temp charge, but never realized they did a temp charge of the check + 20% for tip.... theoretically you could get denied if you went out and had a 50 dollar meal, and only had 55 on the CC free...

 

[Jzero]

Originally posted by: dxkj

Originally posted by: Jzero
You will see the actual amount once the charge is posted. This is a fairly common practice.

I understand the practice of doing a temp charge, but never realized they did a temp charge of the check + 20% for tip.... theoretically you could get denied if you went out and had a 50 dollar meal, and only had 55 on the CC free...

Yeah you could get screwed that way. Even worse - if you are using a debit card and have outstanding checks and don't keep a lot of extra in the account, you could bounce checks without realizing it.

 

[RossMAN]

Luckily you used a cc instead of a debit card.

Do you know if all 16 digits of your cc were printed on the receipt?

Unless the charge has hard posted what you're seeing is only an authorization. This happens with most transactions at restaurants and gas stations.

 

[StageLeft]

We need a FAQ. I see this question posed at least twice a year.

 

[radioouman]

This is typical. Wife had it happen over the weekend.

 

[dullard]

It happens all the time. Suppose you eat $50 worth of food. And suppose you leave a typical $5-$10 tip. Suppose you only had $50 of credit. Suddenly your real charge (meal + tip) will be denied hours or days after you left the restaurant. What is the poor restaurant to do? Lose the $50? Or would you rather be charged outrageous overage fees which often then kick in instant interest with no more grace period?

The solution is simple, approve you for the meal plus a generous tip. Then when the real person goes in and puts in your real tip, there will almost always be money to cover it. All common problems are solved. Well except for the problem of people using their CC down to the last dollar (but those people need to use the CC less or ask for an increase in their limit).