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?
In: 169
In short, when you swipe a card, you get authorizatoin for one transaction.
That transaction doesn’t need to be immediate, there is a timeout, usually a few minutes or it is on pending for that bank day, it depends on the bank.
—
You might ask what prevents the server for putting in any amount?
Few things, Usually the POS software doesn’t allow manual input, doing that is a serious crime with jail time and tips are usually marked as separate items and if it is in excess amount, the bank can block the transaction.
You can also dispute the charge, but that not always works. Since it is rather hard to differentiate between fraudulent sellers from fraudulent buyers. The stores themselves also need to be protected
Latest Answers