Skip to main content

Why is my card charged an extra 20% when I pay at a restaurant or barber shop?

Tags: restaurant, convenience store, specialty store, barber shop

Michael Cohen avatar
Written by Michael Cohen
Updated over 3 weeks ago

When you use a Fluz virtual card at a restaurant, convenience store, specialty store, or barber shop where tipping is common, an additional 20% will be temporarily added to the authorized amount to account for the tip and withdrawn for the transaction.

Here’s an example of how it works:

  1. You dine at a restaurant and your bill is $100.

  2. The initial authorization includes a 20% tip, so we collect $120 from your account.

  3. However, when the transaction is finalized, you actually tipped 18%, making the total charge $118.

  4. After two days, we issue a $2 refund to your original funding source for the difference. The reason we wait for two days is to allow time for any adjustments to the final transaction amount before issuing a refund.

Any difference between the 20% we authorize and the actual tip amount will either be refunded to you typically in two days. If the tip is more than 20%, the funding source tied to that virtual card will be charged for the remaining amount.

Helpful articles:

More questions? Feel free to call our Customer Hotline at +1 888 960 0526. You can also use the Chat option at the bottom of your screen, or if you're on the app, go to Help and chat with us.

Did this answer your question?