how are tips deducted from a card after the transaction is made?

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Especially when written on paper receipts

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3 Answers

Anonymous 0 Comments

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.

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