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Tricky credit card frauds I've recently heard of

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Anonymous
Not applicable

Re: Tricky credit card frauds I've recently heard of


@daybreakgonesXe wrote:

@Anonymous wrote:

Just wondering, what's the point of using your card for the food only and leaving a cash tip?

 

Why not add the tip with your card and write the total?

 

I round up to the nearest dollar so that there are no cents in the total charge.


Cash tip is end of the day/night pocket money for the server, usually, while if tip is paid with a CC they'll have to wait for it in their biweekly paycheck.

 

Also, cash tips may not be taxable because there may not be any proof of such income for the server, while CC tip would be documented and have to be included in income tax.


Thank you, that makes sense.

I may start doing this to help out the waiters.

Message 21 of 36
redpat
Senior Contributor

Re: Tricky credit card frauds I've recently heard of


@Anonymous wrote:

@daybreakgonesXe wrote:

@Anonymous wrote:

Just wondering, what's the point of using your card for the food only and leaving a cash tip?

 

Why not add the tip with your card and write the total?

 

I round up to the nearest dollar so that there are no cents in the total charge.


Cash tip is end of the day/night pocket money for the server, usually, while if tip is paid with a CC they'll have to wait for it in their biweekly paycheck.

 

Also, cash tips may not be taxable because there may not be any proof of such income for the server, while CC tip would be documented and have to be included in income tax.


Thank you, that makes sense.

I may start doing this to help out the waiters.


Huh, still taxable to server, they still need to report tips.  Restaurants have been strict on tip reporting lately because of compliance issues and tip reporting requirements.

 

Also, some restaurants cash out Waite staff on CC tips so they don't have to wait.

 

So why would I want to help someone cheat and get less rewards, makes no sense to me.

Personal Cards: Amex Plat | Amex Delta Res | CSR | Citi AA Exec Business Cards: Ink+ | Amex BGR
Message 22 of 36
Anonymous
Not applicable

Re: Tricky credit card frauds I've recently heard of

As someone who bartended for many years through college up until last year- it really doesn't matter. Every place I worked I could reprint a credit card receipt as many times as I had paper. It was simple. You pull the tab back up and hit 'reprint.' No manager or approval needed. So writing a big $0 or 'cash' on the tip line doesn't do anything to prevent fraud. In theory, I already had your signature on the first copy. I could have reprinted a receipt, wrote $50 in the tip line, and copy the signature from the one you did sign. I can only suggest you take a photo of the signed receipt for your records.

 

Also, there's some saying about 'Don't attribute to malice what can be explained by stupidity." Firstly, many credit card tips receipts were kept in a stack and all the tips entered at the end of the shift, so sometimes up to 50-70 credit tips being entered in quickly and all at once. At some point something will be entered wrong. A good bar/restaurant owner will add receipts manually at the end of the night and if it doesn't match what the credit card system is showing will go back and find the error. However, not everyone is a good manager/owner, and it doesn't always happen. Secondly, for every 20 credit card receipts I would get, without fail, at least 1-2 people had added wrong. Say it was a $75 bill, tip of $25 is written. Total should be $100 but is written as either $90 or $110. Majority of mistakes were from adding the 'ten' spot wrong. Either adding an extra ten or shorting it ten. Restaurant policy will vary on this. Most times policy is to err in the customer favor. So on the same $75 bill with a $25 tip: if you wrote in $90 total, we would change the tip to $15. If you wrote in $110 total, the tip remains $25, and we pretend the $110 says $100. However, some places have policies to use whatever is written on the total line. So in the $90 total example we would still change the tip to $15, in the $110 example we would change it to $35. Reason being is the credit card company will see you signed off on a total of $110.

 

Thers no reason for a server to run your card twice and pretend the 1st one failed. They wouldn't have a way of turning that slip into cash. That money automatically goes to the establishment. Maybe more likely in a small family restaurant if everyone is in on it. It also isn't that profitable for a server to change your tip by $1 or $2. Most people catch those small errors and call the restaurant. It would be found out in a week or two and that person fired if the same server is consistently adding $1 here and there. Too much risk for such a small reward. I'm sure it has happened, just not likely. I would say well over 90% of the fraud is servers copying the card number. They walk away with it and take a quick pic. They check your ID for your drink, or casually ask if you live nearby and you mention the next town over, and now they have your billing zip. Some people have made entire careers out of stealing card numbers from restaurants. Where else is someone going to get time alone with your credit card?

 

DISCLAIMER- I would never, and have never, scammed epanyone while working at these bars and restaurants. 

Message 23 of 36
SouthJamaica
Mega Contributor

Re: Tricky credit card frauds I've recently heard of


@sarge12 wrote:

When you use a cc to pay the bill at that fancy resteraunt, there are a lot of ways the resteraunt can easily commit fraud. Say you leave your tip on the table and the bill is 23.80 and you leave 5.00 cash on the table. After getting the ticket, you write 23.80, leave tip field blank, and write 23.80 total. The waitress writes 5.00 in the tip field and changes 23.80 total to 28.80 by closing the open ends of the 3. Another really clever trick is to run a charge which gets approved, but the waitress brings back the card and says it was declined or that network was down,and asks if you have another card. She runs a charge through the second card and brings you the slip for the first card which you sign. She then can forge the signature on the slip for the second card. When you see the charge on the first card, you dispute it because you were told it was declined, when you get a copy of the signature after investigation it may be too late to dispute the second card which actually has fraudulant signature. Always enter a 0 with a line through it if leaving tip on table. If card is declined, always call cc issuer before handing over second card to find out why if you are no where near limit and not late paying. These tricks are becoming well known. If possible keep an eye on the card while it is in the resteraunt.                    


There's one solution which is that I'm always checking my accounts. Anything in a different amount than I recognize I would realize it very quickly.

 

 


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 24 of 36
sarge12
Senior Contributor

Re: Tricky credit card frauds I've recently heard of


@Anonymous wrote:

@daybreakgonesXe wrote:

@Anonymous wrote:

Just wondering, what's the point of using your card for the food only and leaving a cash tip?

 

Why not add the tip with your card and write the total?

 

I round up to the nearest dollar so that there are no cents in the total charge.


Cash tip is end of the day/night pocket money for the server, usually, while if tip is paid with a CC they'll have to wait for it in their biweekly paycheck.

 

Also, cash tips may not be taxable because there may not be any proof of such income for the server, while CC tip would be documented and have to be included in income tax.


Thank you, that makes sense.

I may start doing this to help out the waiters.


Now I'm not saying that it will help the underpaid server cheat on their taxes, because I would not want to assume they would do something wrong....but if it is cash and they do not report it, that is not my fault. I always leave the tip in cash, for some reason waiter/ waitress seem to really appreciate that. I don't know why!

TU fico08=812 07/16/23
EX fico08=809 07/16/23
EQ fico09=812 07/16/23
EX fico09=821 07/16/23
EQ fico bankcard08=832 07/16/23
TU Fico Bankcard 08=840 07/16/23
EQ NG1 fico=802 04/17/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 25 of 36
Anonymous
Not applicable

Re: Tricky credit card frauds I've recently heard of


@Anonymous wrote:

As someone who bartended for many years through college up until last year- it really doesn't matter. Every place I worked I could reprint a credit card receipt as many times as I had paper. It was simple. You pull the tab back up and hit 'reprint.' No manager or approval needed. So writing a big $0 or 'cash' on the tip line doesn't do anything to prevent fraud. In theory, I already had your signature on the first copy. I could have reprinted a receipt, wrote $50 in the tip line, and copy the signature from the one you did sign. I can only suggest you take a photo of the signed receipt for your records.

 

Also, there's some saying about 'Don't attribute to malice what can be explained by stupidity." Firstly, many credit card tips receipts were kept in a stack and all the tips entered at the end of the shift, so sometimes up to 50-70 credit tips being entered in quickly and all at once. At some point something will be entered wrong. A good bar/restaurant owner will add receipts manually at the end of the night and if it doesn't match what the credit card system is showing will go back and find the error. However, not everyone is a good manager/owner, and it doesn't always happen. Secondly, for every 20 credit card receipts I would get, without fail, at least 1-2 people had added wrong. Say it was a $75 bill, tip of $25 is written. Total should be $100 but is written as either $90 or $110. Majority of mistakes were from adding the 'ten' spot wrong. Either adding an extra ten or shorting it ten. Restaurant policy will vary on this. Most times policy is to err in the customer favor. So on the same $75 bill with a $25 tip: if you wrote in $90 total, we would change the tip to $15. If you wrote in $110 total, the tip remains $25, and we pretend the $110 says $100. However, some places have policies to use whatever is written on the total line. So in the $90 total example we would still change the tip to $15, in the $110 example we would change it to $35. Reason being is the credit card company will see you signed off on a total of $110.

 

Thers no reason for a server to run your card twice and pretend the 1st one failed. They wouldn't have a way of turning that slip into cash. That money automatically goes to the establishment. Maybe more likely in a small family restaurant if everyone is in on it. It also isn't that profitable for a server to change your tip by $1 or $2. Most people catch those small errors and call the restaurant. It would be found out in a week or two and that person fired if the same server is consistently adding $1 here and there. Too much risk for such a small reward. I'm sure it has happened, just not likely. I would say well over 90% of the fraud is servers copying the card number. They walk away with it and take a quick pic. They check your ID for your drink, or casually ask if you live nearby and you mention the next town over, and now they have your billing zip. Some people have made entire careers out of stealing card numbers from restaurants. Where else is someone going to get time alone with your credit card?

 

DISCLAIMER- I would never, and have never, scammed epanyone while working at these bars and restaurants. 


If we were up to the standards of the rest of the world in the U.S, us citizens wouldn't have to worry about this.

 

It should be against U.S law for restaurants and fast food establishments to have stationary terminals.

Message 26 of 36
Imperfectfuture
Super Contributor

Re: Tricky credit card frauds I've recently heard of


@minski wrote:

I actually had the experience of wait staff charging one or two extra bucks as tip than what I had written. I didn't find out about it until later nor did I make a fuss about it because it was only a couple of dollars but I did leave a review mentioning this incident to make certain future customers are warned. 


Same here, but it was always very large.  Smiley Wink. I just called the restaurant, and they could see the change in tip.  Got reimbursed entire ticket (often in cash), employee got fired case closed.  Smiley Surprised

 

Signature needs updating
Message 27 of 36
Imperfectfuture
Super Contributor

Re: Tricky credit card frauds I've recently heard of


@Anonymous wrote:

@Anonymous wrote:
Sounds pretty OCD I agree do you take pictures of the license plate of your pizza guy too?

That's a GREAT idea.  I need to start doing this.  Smiley Wink


Funny guy.  Smiley Indifferent

Signature needs updating
Message 28 of 36
Imperfectfuture
Super Contributor

Re: Tricky credit card frauds I've recently heard of


@Anonymous wrote:

I had fraud with the tip line once.  It was on a debit card, so I noticed quickly.  The tip amount was higher than I'd written.  The manager did not care that the sum was too low on the total line and said I must have written the higher tip and done my math wrong. He said they do not have to charge my card according to my poor math. (My math skills are excellent)  The bank was no help either, because the paper receipt I signed showed the high tip despite the total amount I had written being different from the amount charged.


At least in Seattle, they are required to go by the final line, not the tip amount (new this past year?)..  The manager did not want the employee in trouble.  Smiley Wink

Signature needs updating
Message 29 of 36
Imperfectfuture
Super Contributor

Re: Tricky credit card frauds I've recently heard of


@Anonymous wrote:

@daybreakgonesXe wrote:

@Anonymous wrote:

Just wondering, what's the point of using your card for the food only and leaving a cash tip?

 

Why not add the tip with your card and write the total?

 

I round up to the nearest dollar so that there are no cents in the total charge.


Cash tip is end of the day/night pocket money for the server, usually, while if tip is paid with a CC they'll have to wait for it in their biweekly paycheck.

 

Also, cash tips may not be taxable because there may not be any proof of such income for the server, while CC tip would be documented and have to be included in income tax.


Thank you, that makes sense.

I may start doing this to help out the waiters.


Many companies no longer allow cash tips.  They prohibit (though if hand cash secretly, how can they know?).  If employee on up and up, will not take cash tip (shorting social security down the line).  Waiters are not only people being tipped.  Starbucks, delivery drivers, uber and taxi, the list goes on Smiley Wink.

Signature needs updating
Message 30 of 36
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