User`s manual

9-4
Tender a Guest Check
Introduction
Credit Authorization Limits
A credit authorization limit is a programmed amount that
determines if an authorization is required and, if so, for what
amount. There are four limits that can be programmed:
❏ Initial authorization amount. The amount of sales that is
pre-approved for all initial credit authorizations. For
example, say this amount is set at $20.00. When you request
an initial authorization on a credit card, the processor
checks to see if a $20.00 charge on that card is valid.
❏ Credit authorization tip percentage. The percentage
amount that is used to calculate an estimated tip. The
estimated tip amount is added to the sales amount, and the
entire amount is then sent to the credit card processor for
authorization. Increasing the authorization amount to
include a tip saves you from having to request another
authorization for the actual tip amount when the check is
paid.
For example, at the end of the meal, a party’s guest check
total due is $100.00. Service is good at this restaurant, and
20% tips are not uncommon. When the waiter performs the
credit authorization for this check, the 3700 system actually
sends an authorization request for $120.00 to the credit card
processor. After the authorization is approved, the customer
signs the voucher, leaving the waiter a 18.5% tip. This
additional $18.50 is covered by the authorization.
❏ Secondary floor limit. The maximum amount that the
payment amount can exceed previous authorizations
without requiring another credit authorization.
For example, a credit card is authorized for $10.00. The
secondary floor limit is $2.00. When the final bill is
presented and tip is added, the amount due is $12.00.
Because $12.00 is $2.00 more than the authorized amount,
and the secondary floor limit is $2.00, a secondary
authorization is not required.