For in-person, card-present authorizations at restaurants and fast-food merchants, Highnote places an additional hold on top of the purchase amount to cover a potential tip. This applies to the following merchant category codes (MCC):

• 5812: Eating places, restaurants
• 5814: Fast food restaurants

The size of the additional hold depends on the card network. By default:

• Visa: 20% above the purchase amount
• Mastercard: 30% above the purchase amount

Requested vs. Approved Amount

The Requested Amount (on the transaction in the Dashboard) is the purchase amount the merchant sent, before the additional hold. The Approved Amount is that purchase amount plus the network hold, and it is the amount held against the cardholder's available balance.

For example, a $100 restaurant purchase shows a $100 Requested Amount on both Visa and Mastercard:

• On Visa, the Approved Amount is $120.
• On Mastercard, the Approved Amount is $130.

To see the purchase amount without the additional hold, use the Requested Amount. Once the authorization clears, the additional hold is removed and the actual cleared amount is reflected in the ledger.

Partial approvals

If the cardholder's available balance cannot cover the full purchase amount plus the additional hold, and the merchant's terminal supports partial approval, Highnote approves a reduced purchase amount and holds the available balance, leaving room for a tip. If the terminal does not support partial approval, the authorization is declined for insufficient funds.