What To Do When You Discover You've Been Overcharged At A Restaurant
James discovered that the waiter at a steakhouse he and his wife ate at padded his bill by 4 extra dollars, but also ran through the charge a second time with no tip at all. Now he's wondering what to do next.
He writes:
So, on Monday my wife and I decided to go out to Longhorn Steakhouse to celebrate our 5 year wedding anniversary. Today I log into my bank account to make sure my paycheck went through when I see a charge at Longhorn Steakhouse for 47.13, which was higher than my bill was even after the tip I'd left. I did some quick math and determined that they over charged me by 4 dollars.
But it gets worse.
While steaming over that little pricing error I noticed two lines above that that I'm being charged 38.38, which as I'm staring at my receipt from the night is the actual charge minus the tip...
I was wondering what the protocol was for getting your money back out of a restaurant that appears to have double billed you... I've got the receipt, and placed it in my wallet for safe keeping, but I'm wondering what the easiest way to dispute the second charge is going to be, will they have records, or should I print out my bank statement and bring it with me?
Would I be out of line to request my tip be removed so the waiter does not get a tip? Afterall, the tips themselves are to show an appreciation of the value of their work, if the waiter billed me twice then he doesn't deserve a tip as he's forced me to enter their location and argue finances on my own time.
Any advice would be greatly appreciated...
Thanks.
We think the advice at punny.org is good, and it suggests three steps in this order:
2. Call the police and report the theft.
3. Call the restaurant (optional) and explain what happened. If the manager isn't involved in it, he or she will likely be very interested to find out what your server did.
Punny.org also suggests working in a checksum when you tip, so that you'll be able to quickly spot altered totals when reviewing your account later. The problem with that, of course, is it requires basic math while you're figuring out your tip, and sometimes (too many drinks, dinnermates talking to you) that can be hard to pull off accurately. Thankfully technology can help—we found a link to at least one paid iPhone app that will do this for you, but better still (as in, free) is this web-based app called TippyTops that was made for the iPhone but should also work on other smartphones with a decent web browser.
One final note: it's possible that the first tip-free charge is a hold placed on the card to pre-authorize it, and it hasn't dropped off your statement yet. You should review that option with your bank when you call them. That doesn't explain the doubled tip, however.
Update: James sent us the above email two days ago, and in the meantime he'd already called the restaurant (he thinks like many of our readers do, apparently, and gave them the benefit of the doubt). He also describes some of the waiter's bad behavior, which we think justifies the lower tip.
Here's his follow-up:
Just as a brief update to it, I called the restaurant, asked for a managed, complained about the charge and they began looking it up. apparently they had just recently upgraded their credit card transaction system. But more importantly the manager informed me that this particular employee had used my card on someone elses bill, realized what he'd done, reversed the charge, and then billed me properly.
The error here is that the employee did not inform me of his mistake, as such when I went to look at my bank statement a couple days later I noticed the two charges. The manager proceeded to explain to me that the charge should drop off his receipt within a day or so.
And indeed it did, the following morning it was gone.
The manager asked for my address so he could mail me something to make up for the error, having worked retail before I politely declined the offer as I knew it would've most likely been a gift card. I informed him that my intention was to highlight the poor service that the waiter gave us and that had he at the very least informed us of his error then I would've been less agitated.
I also took the time to explain to the manager that the waiter himself mostly chatted away with two other employees (women, one in a green shirt vs. the usual white, so I'm guessing a manager) and "shoulder checked" us to see if we needed anything, only asking when he was walking by to check on something or wait on someone else, then returning to the two employees to chat some more as they ate. I informed him that so long as the employee was "re-educated in the proper use of a credit card transaction device" that I would be satisfied, and he assured me that he would.
Total time: 20 minutes
Items required: Last night's receipt (For receipt number), dollar value of both charges for look up ($38.38 and $47.13) and credit card used for the transaction.
Did not require even setting foot into the store. Also want to note that even if they'dve had to do a charge back, a trip to the store would not have been required.
Thanks for posting the story, enjoy the update.
"Fight Thieving Restaurant Servers With Checksum Tips" [Punny Money]
TippyTops Tip Calculator
(Photo: rick)
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Comments:
Why does the OP immediately assume it's a theft and not an honest mistake? Maybe he accidentally put in the extra $4, realized his mistake, then tried to undo the whole thing and charge it again.
He was probably mad that you left a 12% tip on a $38 check.
agreed. We've become too quick to pull the "charge back" trigger. This could be just an honest mistake. The post doesn't answer the question as to whether or not these are actual charges, or if they are just pending. If they're pending, you're money is essentially in limbo.
Call the police? Someone would really do that? I'd say the most likely scenario is the busy waiter put in the wrong total then didn't correct it right. Call the manager, not to police
Agreed, give the resturaunt a chance to make it right. If they decline or give you reason to believe intentional, then involve police and your bank.
What is it was a new server who attempted a preauthorization and entered as a charge by mistake?
The behaviour or the establishment when you bring it to their attention will make very clear is a further course of action is required.
And I'm sure I won't be the only one to point out that the time to stare at your receipt is when it's handed to you, not days later.
P.S. Happy Anniversary.
When I traveled for business and would fill out my expense reports, I found a few instances of this. I agree... call the restaurant. They will/should fix it. If they don't, then file a dispute with your cc. If you still have the receipt, that's all the proof that you need. It happens.
Talking to the bank and everything might be a bit over the top for a first attempt at solving this.
The restaurant owner/manager knows he will have only one legitimate receipt he can process. If you go there and show him your copy of the receipt I am pretty sure he can reverse the erroneous on the spot.
Just assume it was a mistake to begin with. If they won't play ball, then just go through the bank - pretty easy, really.
I had something similar happen at a Ford Dealership for a spare part - they billed me twice. I actually went to the bank first, and they said to talk to the dealership first.
I went and did this, and they reversed it right away. They had even noticed it a while before, but since it was a spare part and not service, where you leave your address and phone number, they could not find out who to credit it back to.
Guh, checksums are complicated, and I'm a geek! I always calculate an 18% tip then round up so the total is the nearest whole dollar, and so they're getting more than 18% (although I'll do 20% or more for amazing service!). Then I write it on my receipt and save that until the bill clears.
On another note, I have to agree with the first comment and say I'd call the restaurant and speak to a manager first. Mistakes happen, and I'd rather get to the bottom of the story before I get anyone fired for theft.
@ponycyndi: He was probably mad that you left a 12% tip on a $38 check.
Could be - but then he should try learning a marketable skill to increase his income, not steal from people.
If the $38.38 incluides the tax, ponycyndi, it's more than 12 percent. You don't tip on the total including tax; you tip on the value of the food and drink.
Save your copy of the signed receipt until the charge comes through. It's easy to dispute the charge that way.
Why would you call the police over this? It's the same as calling the police because McDonalds doesn't have any chicken mcnuggets. Calling the bank at this stage is also pretty useless because they will need proof either way. First step is to call the manager at the restaurant. They will have all the records they need and will be able to tell if it was an honest mistake or intentional. I have had cards run through twice because of new employees. They mistakenly think they have to run the card through again after you add the tip. The added $4 might be an honest mistake or not, but the first step would be to call the restaurant. It may take a day or two to get resolved, but it will happen. This is assuming that if a scam actually did happen the management wasn't involved.
For all the chargebacks I've done, I'm always asked if I tried to resolve it with the merchant first - so I suggest he call the restaurant first, and at least give that a try. If that doesn't work, then do the chargeback.
@Dirk: "The tip does seem kind of low."
At least he didn't write, "Here's your tip, whore!" on it. ;-)
Also - (besides my poor typing above) I believe most banks, when you initiate a chargeback will ask if you contacted the merchant about the problem.
Banks term a chargeback a "disputed transaction" while it is pending, (it becomes a chargeback if your dispute is succesful).
Since the merchant hasn't yet declined to remedy the error (since he hasn't been notified), it is not yet a legitimate dispute.
Overcharged restaurant bill has happened to me, and of course I didn't keep the receipt to prove my case, so I simply resolved never to eat there again.
You can also fight back by telling everyone you know about your experience, if you so choose. Word of mouth makes for the most effective advertising, in this case, away from their restaurant.
Even though they aren't supposed to, a lot of restaurants with pre-authorize for the total plus a certain percentage tip. It's possible the larger of the two was that pre-auth, and the actual amount of the bill that was charged is the actual swipe but will show the correct amount (with correct tip) when the charge finalizes/clears.
My suggestion is to wait a few more days for any pending charges to clear first, then try to follow with restaurant/bank/etc. as OP deems appropriate.
The guy who did this is a bad criminal. Do smart things. The smart way of doing this is only on credit card receipts that have both pieces left in the book. No way to prove you added on more then they claim to have left.
Not that I'd ever condone such actions, but even if I don't write the tip in the total, I take my copy.
I laughed at "calling the police" - that's ridiculous.
I love this comment too on the link, which is even funnier "blame the consumer" behavior.
A far more reliable way to avoid getting ripped off at restaurants is simply to eat out less. Learn to cook. Once you have a feel for what a glass of pop, tea, wine, or beer actually costs and how much work goes in to making a nice meal, you have a better idea of whether the amount the restauranteur charges for menu items is fair.
@jamesdenver: "A far more reliable way to avoid getting ripped off at restaurants is simply to eat out less. Learn to cook. Once you have a feel for what a glass of pop, tea, wine, or beer actually costs and how much work goes in to making a nice meal, you have a better idea of whether the amount the restauranteur charges for menu items is fair."
Or pay with cash.
Or, you could calm the f down and think about it first before spreading a bunch of bad gossip when you haven't resolved the damn situation first.
If he used his debit card, then there is most definately a pre-auth that will ghost on his account for a business day or three, depending upon the bank. As has been discussed numerous times, places that need open-ended authorizations often hold the amount + $x in order to guarantee the charge. My guess is that either the server screwed up or the OP is quick to assume fraud.
As a person who spent too much of my young life in restaurants, servers don't steal $4 at a time. It is the easiest way to get caught for the least reward. Honestly, the best way to make the dough is find a few big checks where the customer left their copy of the reciept and then adjust the ticket that way. In that case, the employee has plausible deniability and the customer is left with their thumb up their ass.
@krztov: Maybe the service was crappy. Here in the midwest, 20% is not a universal rule. 15% is fairly universal, but people in my parents' generation still tip 10%.
This happened to me at a Dave and Busters. Ate with a big group, split the bill into separate checks and all the other stuff that the waiter hates. I got charged for 1 or 2 additional plates that weren't mine. I called them and they initiated a refund right on the phone. No police or bank involvement necessary. I learned that this was an honest mistake.
What's with all the alarmist behavior on this site today? "Movers move woman to tears" ? Seriously? She makes a 1 BR to 1 BR move seem SOO EASY when some 1 BR places have WAY more stuff than what is appropriate. You pay them to lift things. Don't expect the royal treatment. Good Lord, let these people that are lifting things for you ALL DAY do what they need to do at their own pace so that they don't hurt themselves on your job (where you would then be up a creek).
I'd get madder then fish grease, and talk to Arnold Diaz, but I'm like that.
@SportsCentre: That was my impression. Here is what I believed happened:
Waiter runs credit card, but accidentally types in wrong amount, cancels transaction and then re-runs for correct ammount. The $47.13 is probably an authorization, not a charge, and will disappear within a few days.
I have noticed many times, after eating at a restaurant, the authorization shows up in online banking for the total minus tip. After a couple of days, when the charge is completed, the total plus tip amount is debited.
@BZMedia:
I always hated the folks that felt the need to moralize their shitty tip (or lack thereof) with a comment. Honestly, if you didn't tip me, I probably had it pegged from the moment you sat down or as the meal experience got progressivly worse. No need to become fodder for jokes and whatnot by the staff afterwards.
@ponycyndi: I was wondering that myself... the guy left a $4.75 tip on a $38 check. As someone who works in the restaurant industry, I really can't sympathize with anyone who is that cheap.
And the first thing you should do is call the restaurant, not the bank. Most managers will figure out the situation with you and reverse any mistaken charges themselves. Then you don't have to be on the phone with the bank.
It happened to me once - got charged $175 for a $30 dinner. Turns out they didn't charge my friends for their portions and instead billed the whole thing to me. The restaurant manager apologized and sorted the entire thing out for me.
@BrazDane: Sorry? They knew they had run your card twice, but they didn't know where to put the credit? Did they suddenly get amnesia and forget your card number?
You should first call your credit card bank and find out if the double charge is just that. If it is, open a dispute on both charges. If the charge not showing the tip is just a hold then dispute the real charge.
You should then speak to the manager of the restaurant and see what he/she is willing to do about it. If you are issued a credit by the manager you can always drop the dispute with the bank.
If this is not simply an error I would consider filing charges against the person who did it. I believe it might be considered credit card fraud but I'm not sure.
Something similar happened to my son a few years ago. He, his wife, and another couple went out to eat. When the bill came the couples split the total. My son put his half on his credit card. The other couple paid cash. Several days later he noticed the full amount of the bill had been charged to his credit card. The half he used his card for and an additional charge for the half the other couple had paid in cash. He had his receipt that showed the one charge but that was all. Since the restaurant was not able to produce a second signed charge slip the bank reversed that charge.
My son attempted to get things straightened out with the restaurant manager before disputing the charge but the manager was not willing to do anything. In fact he told my son he would only reverse the second charge if my son got the other couple to come in and pay their half, which they had already paid. He claimed he couldn't get it back from the waiter supposedly because he wasn't working there anymore.
the local mexican restaurant did that to me. I just disputed the charges as a double bill. They rang it through once with out the tip and again with the tip, and both charges stuck. Chase insists that they have resolved my dispute, but get this it might take 2 cycles for the credit to appear. Right, I dispute a charge within 3 days and might have to wait 60 days to get it back.
@SkokieGuy: "And I'm sure I won't be the only one to point out that the time to stare at your receipt is when it's handed to you, not days later."
I think he got the receipt for his actual bill and not the extra one he got fradualently charged for.
I think it is funny how many people are suggesting that it was just a mistake by the waiter. How would the waiter have mistaken $43.17 for $47.17? A 3 MAY look a bit like an 8, but nothing like a 7. On a key pad the 7 is about as far away from the 3 as you can get. The police can't do anything, unless the waiter admits to stealing from you it is more or less impossible to PROVE that this was not a mistake. If it was a mistake the D_BAG should get in trouble for it anyway so that he learns to be more careful. What a loser - but I guess if he wasn't a loser he wouldn't be trying to steal $4. At the end of the day, regardless of what happens, just be glad that you are not waiting tables and looking for a way to steal $4.
@ponycyndi: Low tipping is not good, yes, in fact, i strongly recommend tipping well, even when you are stranded on an uninhabited island. But the point here is, if the tip is really bad, do equally bad stuff to his food the next time. Unauthorized charges are not the answer.
My husband and I have been noticing that this has been happening quite a bit lately--usually when we eat out in tourist towns. It's happened 5 or 6 times over the course of a year (enough so that we rarely pay by card anymore). Usually, a few dollars are added to the bill. Sometimes, we'll be double charged.
It seems to be a form of credit card fraud that is small enough that they're banking you won't notice. Over the course of an evening, though, it could be hundreds of dollars. I'm not so sure calling the police isn't the appropriate remedy, especially when it seems like this is a fairly significant problem...
@hillsrovey: the restaurant that double charged me is pretty incompetent as it is...i wouldn't trust them. sad that I trust Chase more than Tortilla Flat
I think this is yet another lesson we can all learn that paying in cash if you have it on-hand is superior to credit/debit.
Ive had this happen before, I just printed out a copy of my charges and brought them and the receipt to the restaurant. The manager was very understanding and credited the double charge to my card on the spot. Problem solved.
This would be my first line of action, reporting it as theft or trying to file for a reversal before even talking to the establishment seems overkill.
I'm not sure if you've worked in a restaurant before, but shitty tipping habits often correlate to ridiculously obnoxious people. In this case, the fact that he's talking about what appears to be a pre-auth on a debit card AND he left a crap tip means that I reside plainly in the "OP's a moron" category.
@prag: some places don't have signed copies...the merchant gets the signed copy, customer gets the other copy
@SportsCentre: Exactly, this happened to me a few months ago and it was an honest mistake. I've got an uncommon first name and in that restaurant paying at the exact same time as me was a gentleman with the same first name as mine. They had accidently billed them both to my card. They had also noticed this and fixed it later but apparently billing shows up instantly where as credits take a day. I called the restaurant and they explained everything and asked me to wait a day. Which I did and everything was fixed on my card. I always recommend calling the restaurant first as they can easily credit the money back to you. Just my 2 cents.
A few thoughts:
Back "in the day", I used to wait tables and tend bar. I can't tell you the countless times people added in extra money on the tip line, or extra charges, just to get a few extra bucks. The overwhelming majority of staff are honest, but a few bad apples can cause quite the damage.
Protect yourself this way:
1. Always read the check. Make sure the items match up to what you ordered, and check to see if you have an automatic gratuity added.
2. Always check your card total against your bill.
3. Always fill out your copy with the total (with tip), and keep it. This is your receipt, and your "proof" should someone fill in a different amount. Just the act of taking it with you will raise a red flag with some scammers.
4. Always write your tip and total with a '$' in front of it (e.g. '$5.50'). It makes it harder to alter (especially by putting a '1' in front of it).
5. If you use the technique of making the resultant total always have the same change (e.g. "My total is always $xx.78"), do NOT do it so that you round up to "$xx.00". Why? EVERYONE does that, and if a server has to guess (or sees that) when pulling a scam, they'll round it to that. Too obvious.
It's possible that when the waiter was entering the transaction, he entered the $38.38 first. Then, realized he didn't enter the amount with the tip and proceeded to enter the $47.13 ($38.38 + tip) while trying to null the previous transaction.
Sometimes, its not fully certain if the entire transaction went through but this can be an honest mistake that can happen at a fast moving restaurant.
Word of advice, the MINIMUM tip in a service transaction (like a restaurant) should be at least 15% (unless of course the service was so God awful that you just HAD to leave a lower tip).
Call the Cops??? Before calling the location?? How can consumerist even say this?? Wow honestly you lost a lot of credibility in my book.. Thinking it was not a mistake before even finding out... WOWWWW
I recommend going to the restaurant and speaking with the manager first, and failing that, talking to your bank about reversing it, before calling the police and wasting our public resources over a billing error.