We went to visit our son recently at college and went to a restaurant near campus for lunch. The place was busy, but we were seated quickly without reservations. The server seemed rushed, but he was pleasant. Ultimately, the food and service were good. I would not describe it as “great” or “exceptional”. As such, I added a gratuity that was approximately 18% of the total.
While reviewing my credit card statement against the transactions I had logged into my Moneydance finance program, I noticed the amount charged to my card did not match my transaction. I retrieved the actual receipt to verify that I had not made an error. The receipt clearly showed the amount of the tip and the amount I had signed my name authorizing. The server increased the tip to approximately 24%.
We’re not talking a lot of money, but fact of the matter is it’s fraud. I happen to use a Citi Double Cash credit card (which provides 2% cash back on all purchases). I logged onto my account and clicked the “dispute” button. I was prepared to upload a photo of the receipt that showed the correct amount. To my surprise, they simply added an instant credit to resolve the dispute.
Personal finance “gurus” like to scare people about the evils of credit cards, which may be true for those that use them as a debt instrument, but I continue to appreciate the value and security I receive from using a credit card as payment tool for purchases I would have made otherwise with cash, check, or debit card.