Using at Tipping Establishments (restaurants, salons, etc.)

Tips for Using Your Gift Card at Restaurants, Salons, Hotels, and Gas Stations

If you're experiencing difficulties using your prepaid gift card at establishments like restaurants, salons, hotels, or gas stations, it may be due to pre-authorization charges. Here are some helpful tips to navigate these situations.

Understanding Pre-Authorization Charges

Many businesses, such as restaurants, gas stations, and hotels, apply pre-authorization charges when using prepaid cards. This extra charge ensures there are enough funds on your card to cover the purchase and any potential additional costs (e.g., tips or incidentals).

• Common Practice: Pre-authorization charges are automatically added to your total when you use your card.
• Refund Timing: If your purchase is successful, the supplementary charge is typically refunded to your card within 7 to 10 business days.
• Declined Transactions: If the merchant requests authorization for an amount greater than your card balance, the transaction will be declined. Merchants are usually unaware of these extra charges and cannot prevent them.

Using Gift Cards at Restaurants, Salons, and Tip-Adding Establishments

When using your prepaid card at places that accept tips (e.g., restaurants, salons, or food delivery services), the merchant may temporarily add an extra 20% to your bill. This ensures that there are enough funds to cover a potential tip after the card is swiped.

• What Happens: The additional 20% will be refunded to your card balance within a few days if no tip is added.
• Recommendation: To avoid issues, request that the merchant process the card for 20% less than the total bill.

Pre-Authorization at Hotels and Car Rental Agencies

Hotels and car rental companies often place additional authorization charges on your card to cover any potential incidentals.

• Refund Timing: If the transaction is successful, the extra charge will be refunded within 30 business days.
• Declined Transactions: If your card balance cannot cover this charge, the transaction will be declined.

By understanding these pre-authorization practices and following the tips provided, you can avoid declined transactions and ensure smoother use of your prepaid gift card at these types of establishments.