Please adjust the settings in your browser to make sure JavaScript is turned on. Unlike cash tips, credit card tips are processed and paid out to the service provider at a later date. For this reason, there are situations in which cash tips may make more sense-even though tipping with a credit card remains a convenient choice.
Tipping on a card can make paying for services-such as a restaurant visit-more seamless. Tipping via cash can be better for service workers, however. Understand the key differences between card tips and cash tips so you're prepared for your next visit to a service business.
However you opt to tip, you may want to ask if so-called "back-of-house" staff receive any share of customer tips and adjust your tip amount accordingly. At a restaurant, the back of house may include busboys, dishwashers, runners and others: all of the people behind the scenes who make your experience possible.
It's common for these staffers to receive tips, but policies may vary. Most of the time, your total bill-the subtotal plus your tip amount-will be processed within one business day. It can take another day or two for the amount to change status from "Pending" to "Completed" within your credit card account. Note that tipped workers don't receive your tips immediately if you pay with a card. Legally, they must receive their tips by the next pay period-but this can be a week or two after your card is charged by the merchant.
Tipping with a credit card has advantages, but some service professionals may prefer to receive their tips in cash. Learn the differences between tipping with a card and tipping with cash at restaurants and other service businesses-and don't be afraid to ask what kind of tip is preferred. Cash back rewards are bonuses provided to customers when they use their cards to make purchases.
Cash back rewards can take the form of dollars or points. Shopping around for a credit card or a loan? This method increased the tip to 23 percent of the bill [Source: Center for Hospitality Research at Cornell ]. Temple University psychologist Bruce Rind found that weather can influence tip amounts. Rind conducted a study in a room with no visual clues to the weather.
But describing sunny skies sent the gratuity rate soaring to 24 percent" [Source: Pyschology Today ]. For many people, tipping is a way of ensuring continued good service. For example, if you go to the same hairdresser every month, you probably want to keep him or her happy by tipping well, usually 15 to 20 percent; but what about all of those other services you receive?
Do you know how much you should really tip the skycap, the bellman, the concierge, the maid and all of those other helpful folks out there who depend on tips to make a living? It's extremely confusing, and it varies not only from country to country but from city to city as well. No wonder pocket tipping charts and cell phone tipping calculators come in so handy. Below are some general guidelines for tipping the more common and a few of the less common services we receive.
Most of us know that we should tip waitpersons at restaurants 15 to 20 percent of the bill. At upscale restaurants, you may also need to tip the sommelier or wine steward 10 to 15 percent, taking into consideration that he is sharing his expertise with you, often taking the time to learn about your preferences so that he's able to make appropriate recommendations.
It's also important to remember that your waitperson tips all of the other servers who assisted him throughout your meal, such as the busboy, the bartender and others. The next section covers common tipping customs for hotels, airports , parking and auto-related services. What about all of those people who provide services throughout out the year, whom you patronize on a regular basis?
How do you tip them? Most people give a gift during the holiday season. Here are tipping suggestions for typical service providers:. Gratuities to hotel staff vary from location to location, usually depending on the size of the metropolitan area and class of hotel. Although hotel personnel and the typical services that they provide are listed below, should any staff member go above and beyond outside of these guidelines , you should consider compensating them for their efforts.
Want to get an earful of arguments on both sides of the fence about tipping? Visit the forums at The Original Tipping Page. You'll see and can join in on many arguments about why tipping should be banned, why tipping should be mandatory, why tips shouldn't be "expected," and why owners should just pay a decent wage. Michael Lynn, an associate professor of market and consumer behavior at Center for Hospitality at Cornell University, researched the variations of tipping in different countries.
Comparing the types of services that were tipped in each country with personality tests that had been given to people in those countries, he came to the conclusion that countries with more "extroverted" and "neurotic" people gave tips to the greatest number of services and also tipped the largest amounts.
The U. His theory is that "extroverts are outgoing, dominating, social people" and see tipping as an incentive for the waiter to give them extra attention. Neurotics are more prone to guilt and general anxiety, making them tip more because of their perceived difference in status between themselves and the server [Source: Center for Hospitality Research at Cornell University ].
The general standard is to calculate how much of a tip you'll leave a server based on the cost of the meal, excluding tax. However, if you want to be particularly generous, you can use the cost of the total bill, inclusive of tax, to calculate the tip, says TableAgent.
Many people feel that giving tip after the tax amount is fair, ensuring that their server receives a larger amount," the website explains. If there's one point to remember, tipping is part of the overall cost of eating out. It should not be considered optional, unless you've been told in advance by the restaurant that the tip is included.
Workers in the service industry rely on tips to make a living and the best practice is this: If you plan on eating out, also plan on tipping. Money Etiquette. Mia Taylor. By Mia Taylor April 26, Save FB Tweet More. Credit: Getty Images. Related Items. Say a credit card company charges a 4 percent transaction fee on a sale. The restaurant can legally take out 4 percent of the tip to offset the fee, as long as it doesn't reduce the employee's pay below minimum wage.
In August, Minnesota raised its minimum wage by 75 cents. To offset the hike, restaurant chain Blue Plate announced it was deducting a 2 percent credit card fee from employee tips. The ensuing public castigation was fierce and in support of the workers.
Though Blue Plate had the legal right to do this, the chain quickly reversed the policy after the backlash. There are two basic economic models, and the differences are those between socialism and capitalism. The team approach is where tips are culled into a pool, then distributed equally often support staff such as busboys and food runners are tipped out first, before servers divide among themselves.
The other system is more individualized, with servers responsible for a set of tables the restaurant lingo is "station". The majority of gratuity, under this system, goes to the server. But it also makes wages more volatile — servers are in essence running their own business night to night.
It's in the name: Advocates of this system say it engenders team spirit operating toward a common goal. At Arlington Heights coffee shop Mr. Allison's Restaurant, where tips are distributed evenly, head server Jody Navarrete says: "It's not about us, not about my customer or my tip. It's about our customers. We see food ready, we'll bring it out to the table. That's why you'll never see an empty coffee mug. Tips are divided based on the worker's position: Lead servers captains receive five points, back waiters four points, sommeliers 3.
This is the more popular model. It's a commission-based system with higher risk but also higher reward. The biggest pro is the incentive for servers to be extra attentive during service, to sell that extra glass of wine, to advocate for the dessert, to push that check average up.
The server's wages are also largely dependent on which customers are seated in his or her section. If the diners are a dozen suit-and-tie executives, congratulations in advance. The flip side is it can lead to squabbling between servers and the host, who decides where diners are seated.
A common refrain: "Why did I get the tourists and she got the expense-account suits? I let them reward themselves. Boka group restaurants also take the individual approach. In addition to the incentive for workers to try their hardest, partner Kevin Boehm said it helps in hiring too: "You'd probably attract more ambitious people.
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