Credit Card Authorization
May 31, 2009 | 2:12 pm
#1
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Credit Card Authorization
In the US, it is normal practice that restaurant card swipes are AUTHORIZED (not charged) at 1.2 or 1.25 times the charged amount. This is something the merchant bank programs into the credit card machines.
May 31, 2009 | 11:29 pm
#2
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We've dined in the States dozens of times. No restaurant ever pre-authorized extra sums. Only once in an Italian place in New York City we've encountered a 15% tip written in a receipt, but even in this case they pre-authorized my card without the tip.
May 31, 2009 | 11:34 pm
#3
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While I can understand tips in restaurants, I'm still astonished when a tour driver DEMANDS an 18% tip.
May 31, 2009 | 11:49 pm
#4
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Absolutely not correct. They do authorize extra 20% to 25% but it doesn't show on the receipt that you sign.
Jun 1, 2009 | 12:00 am
#5
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I've written here twice: my banks inform me through SMS about every single transaction, either approved or declined. These SMS are delivered in seconds and have exact sums and merchant names which in themselves sometimes quite funny.
Last edited by paulmoscow; Jun 1, 2009 at 12:06 am
Jun 1, 2009 | 12:08 am
#6
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"Visa protects you! An authorization obtained by a restaurant is valid for that
amount plus 20 percent"
http://usa.visa.com/download/merchants/rest_own_mgr.pdf
Jun 1, 2009 | 12:27 am
#7
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Adding to this subject that seems to be getting OT from the thread. Indeed places do look for an authorization/pre authorization for more than the amount, such as restaurants, hotels, etc. It is not an actual charge, just a pre auth.
This is the reason you see signs at a hotel stating that if you use your check card at check-in, it may tie up some of your funds for a few days.
This is also done at "pay at the pump" fuel pumps. This is what prevents someone from swiping a visa gift card for instance, that has $25 on it, then filling up their tank for $50.
This is the reason you see signs at a hotel stating that if you use your check card at check-in, it may tie up some of your funds for a few days.
This is also done at "pay at the pump" fuel pumps. This is what prevents someone from swiping a visa gift card for instance, that has $25 on it, then filling up their tank for $50.
Jun 1, 2009 | 2:14 am
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One question about this authorization issue - why on Earth would a restaurant (pre-)authorize anything?
I eat, get the check, give them the card (and maybe add the tip), they charge me the amount on the check, that's it. True, in some places there is a line on the slip where you can add the tips and they'll charge you that in some form of "post-charge"
(Getting completely OT here, sorry)
I eat, get the check, give them the card (and maybe add the tip), they charge me the amount on the check, that's it. True, in some places there is a line on the slip where you can add the tips and they'll charge you that in some form of "post-charge"
(Getting completely OT here, sorry)
Jun 1, 2009 | 4:03 am
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If they actually charge your card twice, once for the bill and once for the tip, they will pay twice the fee. There is no fee for authorization. They auth it so that they know it will go through, then just charge the "grand total" once.
Jun 1, 2009 | 5:39 am
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Jun 1, 2009 | 6:38 pm
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Jun 3, 2009 | 2:14 am
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Jun 3, 2009 | 3:44 am
#14
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Thanks!
Jun 3, 2009 | 3:54 am
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I *wish* this were an option for any of my cards, but have never seen it mentioned anywhere as a possibility.
Originally Posted by paulmoscow
I've written here twice: my banks inform me through SMS about every single transaction, either approved or declined. These SMS are delivered in seconds and have exact sums and merchant names which in themselves sometimes quite funny.