Restaurants adding (unauthorized) tips to credit card/gift card receipts

[bcla]

I'm starting to get a little bit peeved since I prefer to leave cash tips and usually zero out the gratuity on the receipt. But recently I've seen tips added after the fact, even though I have the receipt and absolutely know that I didn't authorize anything additional. Once it was a conveniently added $4 on top, but with gift cards it's often processed like a credit card where there's some sort of post-transaction debit if one leaves a tip.

If possible I like to pay through kiosks now since the transaction is final once I select "no tip".

I put in request to my credit card company and fortunately for one gift card they did have a convenient number to call with real people to contact - and not some overseas call center. I'm not petty, but it just rubs me the wrong way when it seems like someone is trying to cheat me hoping that I'm not going to notice.

 

[kdonnel]

I would charge back the transactions.

Make the merchant provide a copy of the receipt showing the tip written in with the updated final amount including the tip.

If the merchant can't supply written proof of the charge with a receipt you will get your money back.

If a merchant gets enough chargebacks, their merchant bank will start to threaten to no longer do business with them. The management will then get the ongoing fraud stopped.

 

[fla4fun]

I'm starting to get a little bit peeved since I prefer to leave cash tips and usually zero out the gratuity on the receipt.

Do you write a “0”, or the word zero? I always worry that if I write a “0” that it can be modified to show a dollar amount. I usually write the word zero or the word cash on the tip line as the words are more difficult to modify.

I hope you are able to recover any unauthorized tips.

 

[NYCgrrl]

Fortunately never had a tip added after the fact. Recently noticed that Whole Food deliveries via Amazon adds an optional tip which you need to be alert enough to remove if you so choose.

 

[disney212]

I've not had that issue but I always write "cash" on the tip line when I tip in cash.

 

[bcla]

Do you write a “0”, or the word zero? I always worry that if I write a “0” that it can be modified to show a dollar amount. I usually write the word zero or the word cash on the tip line as the words are more difficult to modify.

I hope you are able to recover any unauthorized tips.

I always put a line through it and write in the pre-tip amount on the bottom. I'm not sure how obvious it would look to alter it, although I'm not sure what they do with the receipts. I think when they're reconciled they don't necessarily have to physically turn in the receipts, but maybe they scan them like a check? Or maybe they just enter an amount and have to have the originals saved for a certain amount of time if they're ever questioned. I did a little reading and some servers have been fired for adding to tips, but it had to be egregious such as adding a large amount or doing it to every single customer for a shift.

For the gift card deduction the bill was less than $9 and they took out more than $3. I remember that I left a $2.50 cash tip. When I talked to customer service I was told it couldn't be put back, but they'd send me email with another electronic gift card for the disputed amount. Haven't gotten it yet.

It may not be that much money in the end, but this just rubs me the wrong way that anyone would do this. But that's why paying by some sort of tabletop tablet appeals to me. I don't have to trust someone with a card (I've cancelled a card after unauthorized purchases) and there's no way to add a tip after I've zeroed it out. I heard that in most of Europe the customer is supposed to do that where the card is never in the physical custody of the employee and only the customer has access to paying any gratuity - not that tipping is common in Europe.

 

[tvguy]

I've not had that issue but I always write "cash" on the tip line when I tip in cash.

We went to Red Lobster for the first time in YEARS and they had iPad like device at the table and they appear to have gone cashless. Your tip options were 15%, 18%, 20% or CUSTOM, but you could only enter numbers, not words in the tip line. I guess I could have put 0 and tipped in cash, but it did catch me off guard as I planned to pay cash for the meal which they don't accept anymore. I have only been in one other restaurant with a credit only policy and their handheld device also only allowed you to put a number in the tip line, no words.

 

[Mackenzie Click-Mickelson]

I guess I could have put 0 and tipped in cash, but it did catch me off guard as I planned to pay cash for the meal which they don't accept anymore.

Red Lobster wouldn't be going cashless. Have you not been to these places before? I think you assume you can't give your waiter/waitress cash but more than likely you can. It's just like at Chili's which has been this way for years. They have a machine on the table where you pay with a card but of course having that there doesn't mean they are cashless.

You should have just said you were paying by cash to the waiter/waitress.

 

[fla4fun]

I always put a line through it and write in the pre-tip amount on the bottom. I'm not sure how obvious it would look to alter it, although I'm not sure what they do with the receipts. I think when they're reconciled they don't necessarily have to physically turn in the receipts, but maybe they scan them like a check? Or maybe they just enter an amount and have to have the originals saved for a certain amount of time if they're ever questioned. I did a little reading and some servers have been fired for adding to tips, but it had to be egregious such as adding a large amount or doing it to every single customer for a shift.

They have to keep the records for at least 7 years. It can be digital, with a digital signature like on an iPad, or the physical receipt with your signature. If they receive a dispute, they have to be able to provide a copy of the receipt you signed. It’s a lot of records to keep track of, but if they can’t produce your signed receipt, they automatically lose the dispute, no matter what other documentation they may have. (There are different rules for online documents.)

I have only seen the merchant side of the dispute process, but I believe if you dispute a charge you can get a copy of the documentation provided by the merchant because we would occasionally hear back that the signature was not the signature of the cardholder, and we would have to provide additional documentation that we verified identity as well. I would think the cc companies wouldn’t be going back to the original application for the card to match signatures, since people can have cards for decades.

This is one reason I only pay cash at restaurants for dining in. Interesting to hear some restaurants may be going cash free. I hope they let patrons know prior to ordering or there could be a problem. I assume they would accept it if you have eaten the food and had no other payment option with you. Our company tried a few times to go cashless, because of the liability of cash banks at the retail locations, but they found they lost too many sales.

 

[TLSnell1981]

I always leave a tip and don't have a problem with automatic gratuity for table service, Although Disney's 18% for buffets is aggravating.

 

[tvguy]

Red Lobster wouldn't be going cashless. Have you not been to these places before? I think you assume you can't give your waiter/waitress cash but more than likely you can. It's just like at Chili's which has been this way for years. They have a machine on the table where you pay with a card but of course having that there doesn't mean they are cashless.

You should have just said you were paying by cash to the waiter/waitress.

I did. They are cashless at this location.

 

[CdnCarrie]

In Canada it’s all electronic. You don’t “write” anything. It’s all done on the keypad.

 

[mikehn]

Yes it has happened to me. I was at a restaurant. When the check came, I noticed their recommended tip at the bottom of the check suggested a 25% tip. But I left 20% like I normally do. Next day, looked at my credit card app and noticed the restaurant gave themselves a few extra bucks. Not enough for me to waste my time calling in to file a dispute. But yes, it happens.

 

[Mackenzie Click-Mickelson]

I did. They are cashless at this location.

Never heard of that. No offense but that sounds off maybe because you've spent a lot of time talking about cashless vendors and many people just don't have your experience. A national chain restaurant even with a franchise would be unlikely to be cashless as a policy.

 

[Mackenzie Click-Mickelson]

I hope they let patrons know prior to ordering or there could be a problem

I'd hope so too. Signs on the doors in. Signs at the hostess podium and signs at the table and signs on the menu. I'd expect this to be all there and very easy to see. There should be no surprise when you're about to pay.

 

[tvguy]

Never heard of that. No offense but that sounds off maybe because you've spent a lot of time talking about cashless vendors and many people just don't have your experience. A national chain restaurant even with a franchise would be unlikely to be cashless as a policy.

Well, they are cashless so it isn't unlikely, it is reality. And while I'm not a fan, I can see a restaurant where the tab is likely to be much higher than most due to the nature of their menu, I can see why they might find advantages to being cashless.

 

[fla4fun]

In Canada it’s all electronic. You don’t “write” anything. It’s all done on the keypad.

Is your signature a PIN then, if you aren’t signing the receipt, just like most places in Europe? It’s pretty rare to come across Chip and PIN in the States in a retail environment. But I hope you do get the option to enter a 0 tip if you choose. It’s been a long time since I visited Canada, long ago enough that my parents did all the paying and probably used Travelers Checks to do it.

 

[Moliphino]

I heard that in most of Europe the customer is supposed to do that where the card is never in the physical custody of the employee and only the customer has access to paying any gratuity - not that tipping is common in Europe.

In my experience in Europe there usually isn't even a way to add a tip unless you tell the waiter to add it. They bring out the card machine and key in the amount on your bill, you put in your card and accept the amount being charged.

 

[Mackenzie Click-Mickelson]

Well, they are cashless so it isn't unlikely, it is reality. And while I'm not a fan, I can see a restaurant where the tab is likely to be much higher than most due to the nature of their menu, I can see why they might find advantages to being cashless.

Sorry this is Red Lobster we're talking about. Not a mom and pop. I'm talking about policy a place enacts.

 

[CdnCarrie]

Is your signature a PIN then, if you aren’t signing the receipt, just like most places in Europe? It’s pretty rare to come across Chip and PIN in the States in a retail environment. But I hope you do get the option to enter a 0 tip if you choose. It’s been a long time since I visited Canada, long ago enough that my parents did all the paying and probably used Travelers Checks to do it.

You don’t sign with a ballpoint pen. That’s like 10-15 year old technology. USA banking system is very outdated vs much of the world.

Yes tap, choose tip amount or no tip. Easy peasy.