Why can’t I use my card at certain merchants if I have the exact balance required for the purchase on my card?

Why can’t I use my card at certain merchants if I have the exact balance required for the purchase on my card?

At restaurants, hotels, spa salons, and other merchants where it is customary to leave a tip, cards work with a tip tolerance function.

Simply put, a "tip tolerance" is a security feature that ensures there are sufficient funds on the card for the tip you mark on a receipt, after the server swipes the card. It is usually 20%, by default. The tip tolerance isn't actually charged to your card; rather, the authorization is a kind of “hold” to make sure there are enough funds to cover the tip, if you choose to leave one.

Please note that while you will not be charged this amount nor will you lose any money, in these cases you will only be able to use 80% of the available card amount. The remaining 20% can be used later; it will be returned to your card within 7 business days.
Have a look at this article where we go further into what tip tolerance is.
If you require any clarification or assistance, please contact the number on the back of the card or email us at help@mycardholdersupport.com.

Feel like the article is lacking? Leave a downvote and let us know what you think. We genuinely want to improve based on your feedback.

    • Related Articles

    • What are tip tolerance?

      Tip tolerance allows cardholders to use gift cards for transactions that include tips, such as restaurant meals, or for transactions where the cardholder may want to leave a small amount in addition to the purchase price. This happens when ...
    • What if I would like to purchase something that costs more than the remaining balance on my Prepaid card?

      If you know the balance on your Prepaid card, inform the cashier that you would like to pay that sum of money from your Prepaid card and the remaining balance from a different debit or credit card. Without telling the cashier you would like to use ...
    • How can I use my virtual card online for transactions?

      You simply need to have the card number, expiry date and CVV handy. Pretty the same as when you're trying to make a purchase using a physical card.  Certain cards are part of a one time only promotional program These card sadly will not allow you to ...
    • How can I use a prepaid card at merchant terminals?

      You can simply swipe your card at the merchants terminal and process the transaction. Always keep your PIN number handy as some merchant may not accept card swipe/pay wave as a form of payment.  Virtual cards cannot be used at a physical terminal. ...
    • How come my card doesn't work on some websites when it works for others?

      The general rule of thumb is that if the website/merchant accepts the use of a MasterCard or Visa, the card should, in theory, work. However, keep in mind that not all merchants accepts the use of a prepaid card. Some merchants are more lenient and ...