Usually when people talk about credit card payment processing, or other non-physical/cash means of payment, it’s in the context of online businesses, or simply a more convenient means of handling retail transactions. However, for people that work in the service industry, assigning tips to a credit card or debit/digital system can sometimes be a way to get better tips from customers! There are actually a few reasons for this.
Customers are prone to a psychological effect of spending money more freely when they can’t see cash. This is the reason why most casinos prefer distributing gambling chips, and it’s why some buffet-style restaurants such as Marche have incorporated a system where a “food card” is assigned that servers simply swipe to note a food purchase, with the final tally only being paid upon exiting.
When people aren’t looking at actual bills in their wallet, this tends to make them much more generous with how cash is spent. The same holds true when it comes to tipping. Rather than pull from spare bills or coins in the wallet, it’s now easier to be generous with a debit processing machine in hand.
Sometimes a payment processing unit can include features like automatically giving a customer a set of percentages for what they would like to tip. This can range from 10%, 15% all way up to 30%, and normally includes an option for manually inputting an amount if that is preferred.
Doing all the “hard math work” ahead of time is another great way to make people more generous with their tipping. Things don’t look so “damaging” when it’s a simple percentage, and this generally encourages people to, at the very least, go with the minimum traditional gratuity that is considered a decent amount.
There’s also the psychological effect of having a server present the POS unit, and be present while the payment is being sorted. People may feel more prone to leaving lower—or no tips—when a server goes away. But when a server is patiently waiting to process the payment from a POS unit, this can often act as a guilty deterrent for someone that was more inclined to not tip when unsupervised to someone that doesn’t want a disapproving gaze from the person that had been providing service for the entire meal.
Posted in Payment Processing on Feb 14, 2017