Tip adjustment

A "Tip Adjustment" operation allows a merchant to modify the amount of a previously authorized transaction to include a tip. This is common in industries like restaurants or services where tips are often added after the initial payment authorization.

Key points about a Tip Adjustment operation:

Timing: It typically occurs after the transaction has been authorized but before it is captured and settled. The initial authorization often includes only the base amount, and the tip is added later, usually after the customer has decided on the tip amount.

Result: The total amount of the transaction (original payment + tip) is updated, and this final amount is then settled.

Industry Use: Commonly used in service industries where tips are expected but may not be included during the initial payment (e.g., at restaurants).

In summary, a tip adjustment allows the merchant to modify the authorized amount of a transaction to include a tip before the transaction is fully processed.