Among Friends

[Annabellethecat66]

So I bought a bunch of Visa Gift cards for my teenage grandchildren (that's what they wanted).

While standing at the kiosk, I struck up a conversation with a young woman.  She told me something interesting and I thought I'd tell you guys.

Look on the VISA gift card in the corner.  You'll see a little ice cream cone.  Next to that cone it says Vanilla.

Did you know that if you use that Visa gift card for food at a restaurant the card will actually add 20% gratuity on it?

Yepper!  She said she found it out the hard way.  Here's what happened to her.  She used it at a restaurant and left a tip in cash for the waiter.

When she looked at what had been charged by using the Visa gift card another 20-% was taken off of the card!

The waiter said she didn't add that amount, it came out automatically.  She said she called the VISA people and they said they do that automatically and they would refund her 20% to her.

So now you know.  If you use that card in a restaurant 20% will automatically come out.  Many people leave cash.  I always pay for my meals in cash anyway.  I like to do that so the server can report what she wants to in taxes.  Many of them don't make that much money to start with.

Many servers only make like $3 plus tips.  I've asked some and this is what they've told me.  These are sometimes at very nice restaurants.  THAT'S why I leave it up the the waiter to decide what to report (hence, cash).

Just wanted to pass on what I was told.  I stood there looking at all of the VISA gift cards and they all had that ice cream cone and the word Vanilla on it.  There were a lot of cards on that wall.

Then I went to 2 other grocery stores (one was a Pharmacy) and all of the VISA gift cards had the picture and word on them.  

Now you know too.

[judy0330]

I believe this is incorrect.  What happened is something called "tip tolerance."  Credit cards do the same thing.

"Mastercard, Visa and American Express all do this with prepaid gift cards to ensure you have enough money to pay a tip. The 20% is actually just a hold on your card, and the money is placed back on the card within a few hours."

They are assuming that 20% is the most you will leave.  Whatever you actually leave is what they will deduct from the gift card balance.

[VaBelle35]

Judy is correct.

Similar to how when you buy gas, they authorize $1 and then the real amount is charged.  You'll see the $1 for a day or so and then it falls off.

[chrystaltree]

I think Judy's explanantion seems to be more workable.  I was thinking that automatically taking a 20% tip with no regard as to what the customer wanted to tip...that sounded like a lawsuit waiting to happen.  It didn't feel right but I could be wrong, of course.  

[LurkyLoo]

It should be explained somewhere on the gift card packet, rather than just with the obscure vanilla ice cream code on the card. 

And why “vanilla”? 🤡 Silly business.. 

Merry Christmas, @Annabellethecat66! 🎄 

[proudlyfromNJ]

Just Google and you’ll find out how it works.

[Sooner]

That wasn't true with the ones I used last year.  They didn't add a tip and they were Vanilla Visa cards I got at the bank.  I used $600 worth of them.

[threecees]

Would never buy them. Only like to receive them of course.

Have a bunch of local store gift cards that pile up in my purse and seem to be lost 

before I use them. They get to be a headache anymore.

[Isobel Archer]

Additionally, in ALL states, servers make minimum wage.  If the tips - added to the base salary - don't come to that amount, the employer MUST make it up.

In fact, due to tips, many servers make far above minimum wage (which I have no problem with).

That's what triggered the great bruhaha in DC when activist groups got it on the ballot to force employers to pay minimum wage BEFORE tips.  Servers were up in arms because they feared that with the employers raising prices to cover this requirement, patrons might tip less or not at all and servers might actually be stuck with the ACTUAL minimum wage.

So no - servers are never limited to $3 per hour.

[nomless]

OP, the info you posted is incorrect  A check is made to be sure funds are available should the card holder use it to leave a tip, but a tip is not automatically deducted from the card.  I read several explanations of how it works in articles I found via Google.