Especially when written on paper receipts
In: 4
Funds from Credit card transactions aren’t transferred immediately. When the server takes your card, they run the charge for the amount of the sale and get an authorization. Then, when you write a tip, they just go back in the system and modify the overall amount. Then at the end of the day, the terminals “settles” the whole day’s batch.
Because it was already authorized for the first transaction, so all they have to do is input the tip amount and then that amount is charged.
There are other things with pre-authorization of cards, such as buying gas. Since you have to insert your card before you pump, the pump doesn’t know how much to charge the card bc it doesn’t know how much you’re going to pump. So it pre-authorizes something like $50 or $75. That’s why if, for example you only have $25 on the card and you’re only trying to get like $10 of gas, you usually have to go inside and have the employee run the card.
Can someone comment on my example because i am a foreigner.
The total amount is 5 euro, i want to tip 1 euro so the waiter puts 6 euros total, so how does he psysically gets the 1 euro in his pocket at the end of the day?
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