WHAT IS A 20% TOLERANCE FEE?

Owned by Melissa Furgiuele
Apr 14, 2019
1 min read

A 20% tolerance tip fee is a merchant protection feature that ensures that the Prepaid card that is being used is active, and has a balance on it to withdraw from. Certain merchants will hold an additional 20% on top of your purchase amount to cover for accidentals. Such merchants include: 

  • Restaurants
  • Gas stations (when paying at the pump)
  • Hotels 
  • Rentals (car and equipment rentals)

The merchant will hold the purchase amount and an additional 20%. Once the transaction settles, only the purchase amount will be charged to the card, and the additional 20% will be returned to the card balance.

If the balance on the card is less than the charge amount and the additional 20%, the transaction will decline. 


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