| When authorizing transactions, payment amounts | | | | chooses to leave cash for the tip. Either way the |
| should never be estimated. Following this rule is | | | | customer will be overcharged and the merchant might |
| particularly important for restaurant merchants and it | | | | receive an angry phone call, or a chargeback, or both. |
| means that payment transactions should only be | | | | In order to ensure zero-tip authorization for all |
| authorized for the known amount of the bill. Merchants | | | | transactions, restaurant merchants should consider |
| should never add on an estimated tip. Cardholders | | | | implementing the following: |
| today can, and do, check their credit card activity | | | | - Your staff should be trained to request authorizations |
| online in almost real time. If they see an amount that | | | | only for the amount of the bill. Your personnel should |
| they do not recognize, cardholders are likely to contact | | | | understand the consequences of authorizing amounts |
| their card issuer and ask questions about the | | | | that are higher than the check amount and follow the |
| transaction or file a dispute. | | | | procedure without exceptions. |
| If, for example, a restaurant bill is $150, but the staff | | | | - Make sure that your authorization system is set up |
| adds a 20 percent tip ($30) and authorizes a | | | | for zero-percent authorization. If you do not know how |
| transaction amount of $180, that would create a | | | | to do that, contact your POS terminal provider and ask |
| discrepancy, if the cardholder adds a $25 tip, or | | | | for assistance. |