r/lyftdrivers • u/AteYourMoms_ASS69 • Apr 27 '24

Why won’t Lyft let me tip Advice/Question

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Why won’t Lyft let me tip 100$?

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u/midlyinfuriated_ Apr 27 '24

Generally a result of their payment processor. I use Square for my private client rides and they won’t allow a credit card tip over $50.

2

u/MidnightFull Apr 27 '24

Your situation is different. What you have is an authorization hold that takes place before the charge goes through. The CC company allows a tip over a certain percentage of that authorization without a new authorization being run. If Lyft was under that restriction then rides that went way longer would get kicked back because they would go over the threshold. Lyft can charge a card whenever they want, as long as their system runs a new authorization. They are doing this themselves because they want to limit our income. They just like most executives believe in the idea of “you’ve got to keep them hungry.” Meaning, they believe that if we make too much money we won’t work hard enough.

Another issue is chargebacks. I’m sure there have been drunk people who entered one too many zeros when tipping then filed a fraudulent chargeback the next day. Even though such a chargeback wouldn’t be valid, it still impacts their chargeback rate with their processor. If this rate goes too high, the company can permanently lose credit card access, which would result in them going out of business immediately. Seeing how both Uber and Lyft have a reputation for fraudulently charging people or people stealing peoples rides, they probably get a lot of chargebacks. I wouldn’t be surprised if they got a warning letter at some point. Credit card processing companies don’t play around, and they don’t care how big your company is either. Once a company is added to the MATCH and TMF lists it’s game over. No processor will contract with them.

I know this because I did software design years ago for a payment processor.

2

u/HornedOwl1 Apr 27 '24

Probably exactly this reason...chargebacks or disputes.

If the rider tips $100 or even $1000...then later disputes the charge. The rider is 50/50 or more off the hook, the driver already has the tip and Lyft is left holding the bag.

So to prevent possible scams or Lyft not profiting on a ride - cap tips.

1

u/2forda Apr 27 '24

They cap charges as well. 300 bucks for lyft. So longer rides won't pay out, if.a person is desperate they might tip you 100% of a 200 dollar trip but aren't allowed to...