How do restaurants charge your card for the tip if they already ran your card and gave it back to you before giving you the receipt you wrote the tip on?
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The transaction doesn’t post immediately. The server runs the card to obtain an authorization, and then later goes back and enters the tip amount.
Interesting. This couldn’t happen here in the UK. Having previously dealt with card fraud by restaurant workers I’m glad. I’ll definitely be aware of this when travelling now
The transaction doesn’t post immediately. The server runs the card to obtain an authorization, and then later goes back and enters the tip amount.
Because it’s not finalized, it’s just pending. At the end of the shift they will go through each card payment with tip and manually enter the tip.
Other business do a pending transaction too and don’t actually charge you till later. Some examples are cleaning services and other services that you might have to make an appointment for.
End of the night / end of the shift, the person who ran your card will go back to the machine and update it for the tip.
Interesting. This couldn’t happen here in the UK. Having previously dealt with card fraud by restaurant workers I’m glad. I’ll definitely be aware of this when travelling now
After your server collects the receipt the tip amount is entered into the computer and the check closed out with the final total sent to the bank. When the card is run it’s memo posted to the bank and once the check is closed out, the final amount is sent to the bank. It’s like when you enter your card to get gas and they check to make sure it’s a valid card.
Because it’s not finalized, it’s just pending. At the end of the shift they will go through each card payment with tip and manually enter the tip.
Other business do a pending transaction too and don’t actually charge you till later. Some examples are cleaning services and other services that you might have to make an appointment for.
End of the night / end of the shift, the person who ran your card will go back to the machine and update it for the tip.
When a company runs the card, the transaction is only **posted** to ~~what is called the Automated Clearing House (a national service that handles most all transactions between US banks)~~ the credit card provider.
The ~~ACH~~ provider usually takes a few days to process, after which the debit is considered **settled**.
While it is processing, the seller can update the transaction with additional fees that are incurred on the debt that has been made (in this instance, the tip)
Edit: was wrong about the ACH handling card transactions.
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