Isn't this illegal??

kdibattista

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At work we frequent a little cafe for breakfast and lunch. We normally do take out. It seems that this cafe (actually one of the wait staff) took it upon themselves to add $3 gratuity on an $8 take out order!!! My coworker was balancing her checkbook at it was $3 off. Her reciept said $7.95 but the statement and her bank show the charge as $10.95. No place on the reciept does it say anything about gratuity included and they never add gratuity when we pay cash. She has a call into the manager.

Wouldn't this be illegal?
 
Some restaurants automatically put a tip onto the bill, but it's only temporary.

One Italian take out place always adds $3 onto my bill if I use my bank (debit) card. It stays with this $3 charge while it's pending, but when it clears my account a few days later the $3 comes off.

If it doesn't come off after it officially posts to the account I'd take it back and demand my money back.
 
kdibattista said:
At work we frequent a little cafe for breakfast and lunch. We normally do take out. It seems that this cafe (actually one of the wait staff) took it upon themselves to add $3 gratuity on an $8 take out order!!! My coworker was balancing her checkbook at it was $3 off. Her reciept said $7.95 but the statement and her bank show the charge as $10.95. No place on the reciept does it say anything about gratuity included and they never add gratuity when we pay cash. She has a call into the manager.

Wouldn't this be illegal?


Too me, that sounds a bit fishy!!! I would have your co-worker take the receipt and show the Store Manager because I am all for giving tips and always 20% but 20% on a $8.00 tab would be $1.60 NOT $3.00!!!

AND this was TAKE OUT...more the reason to question the $3.00...why do they deserve a $3.00 tip on TAKE OUT!!!

:confused3 :confused3

If it is as SNOWFLAKE stated then there needs to be a sign posted in the store near the register explaining that additional charge, so as not to confuse customers (esp. when they are balancing their check books)!!!
 
If she was balancing her checkbook, did she write a check or use a debit or credit card?

If she wrote a check, she should know the specific amount she paid.

If she used a debit or credit card, the restaurant generally puts a "hold" on a higher amount than the actual charge, and then the tip amount is handled in a separate and later transaction. think about it- when you eat out, they bring you your check. You send your credit card back with the waiter, which they run through the credit authorization system. They bring back the check, your credit card and the authorization form where you write in the gratuity amount and sign.

When they run your card through the credit authorization system on a $50 tab, for instance, the bank actually puts a hold on $50 PLUS an amount to cover the gratuity that you'll write in later. Later, the restaurant will balance their books using the credit slip you signed and that's when the gratuity gets finalized.

More or less, that's how it happens.

So--- If you paid cash or check, you know the exact amount paid. If you used debit or credit, you should have signed for or authorized a specific final amount, so you'll know that. But if you are checking your accounts online very, very soon after the transaction, you might see a higher amount that reflects the amount "reserved" before the transaction is finalized.

Could that explain it?

momrek06 said:
If it is as SNOWFLAKE stated then there needs to be a sign posted in the store near the register explaining that additional charge, so as not to confuse customers (esp. when they are balancing their check books)!!!

Actually, this is a pretty universal practice among all restaurants.
 

She used her debit card and the transaction was a week ago so I would think that any holds should have fallen off by now. I'll post when she gets the response from the manager.
 
In my early 20's, I worked at a steak house chain restaurant. One of the other servers got fired because she was adding a digit to the front of the tip. For example, if someone left an $8 tip, she would add a "1" to the front and make it $18. Sometimes she would even put in a higher digit. The management never caught on. She got caught when a customer noticed it on their credit card statement, and they reported her to management. I always check my receipts with my credit card statements. Well, I don't, but Dh does it for me.

That girl went to the competitor steak house across the highway and was doing the same thing again there. :rolleyes1
 
I know some places put a small charge on anything under $10 for a charge . But they must have it posted either on the menu or at the register.
 
We operate a family restaurant and for the most part adding a gratuity is against the law. The customer has the right not to pay it . However what we have written on the menu tha parties of 8 or more are given a 15% gratuity, The waitress always tells the table first when they sit that they are 8 or more we usually gratuity the check most groups do not have a problem with that. However what you are talking about on a take out is probaly not a gratuity , many restaurants in nyc have what they call a "tin fee" or a "wrap fee" they charge on all to go orders . It is suppose to cover the cost of to go containers. We do not do it ,but many places feel they should. That too is suppose to be on all take out menus. Go back to the restaurant question the charge it would be wise to reimburse the three dollars that recieve all the negative publicy in your area about the over charge!! :rolleyes1
 
Banks do wierd things with debit card transactions but it sounds like something fishy is going on here. Either way it reminds me of a story about corrupt restaurant owners from one of my favorite blogs www.waiterrant.com.

The story is here :

There’s a tired piece of corruption that unscrupulous restaurant owners and managers love foisting on hardworking waiters – tip stealing. Simply put, some managers insist on getting “tipped out” at the end of the night like a bus person or bartender. It’s almost always done in cash. Sometimes even the owners demand a percentage of the night’s gratuities. In many states, including New York, this is ILLEGAL.

A common tactic is screwing waiters out of the service charge on a large expensive party. For example, a party of 30 comes in and spends $5000. Four waiters are assigned to the party. There’s an 18% service charge of $900. The waiters end up getting $100 bucks a piece. Where did the other $500 go? Into the owner or manager’s pocket! A lot of waiters won’t fight it because they need their jobs or their bosses threatened to turn then into Immigration. Don’t think that [stuff] happens? Trust me. It does.
 
They can't just add a tip on the tip line and help themselves to her money if she left no tip at all. I would have her contact the bank and dispute the charge.
 
tmt martins said:
I know some places put a small charge on anything under $10 for a charge . But they must have it posted either on the menu or at the register.

This is a pet peeve of mine. It is against the Merchant Charter Agreement of Visa/Mastercard to charge your customers a fee for using their card regardless of the amount. When the merchant agreed to accept visa/mc they agreed not to charge their credit customers extra for the privalage. I worked for a major CC lender for many years and this drives me nuts.
 
Just a note about tip stealing, as detailed above. While tip stealing is illegal, there is no requirement that restaurants cash-out servers, and most don't. I suspect, in many cases, the servers resent that law, as much if not more than the restaurant owners.
 

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