A March 29 letter writer questioned how restaurant tips are handled by credit card companies. My understanding is that when the server initially enters the credit card in the credit card terminal they enter the total for food, beverages and sales tax and returns the receipt to the diner. That amount is recorded by the credit card company as a "pending" charge. After the diner adds a tip and signs the receipt, the server adds the tip amount to the "pending" charge. If the diner looks up their credit card account on the internet shortly thereafter, they'll see the "pending" charge listed. When the diner gets the credit card statement for payment, the restaurant charge will be the full amount they signed for, including the tip.
Mort Ganeles
Foothills
Disclaimer: As submitted to the Arizona Daily Star.
