re: Paying and tipping at a restaurant with a card

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Is 100% legal in Louisiana to withhold processing fees on credit card tips. It's a new trend in the industry. Makes sense for operators because they are paying the fees on money they never actually see.

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Gotcha, I don't know all the specifics of cc processing but it just seems like the 5-7% that someone said was being withheld for cc processing would be way excessive. My thinking would be that if a bill is ex: 50.00 plus 10.00 tip, the total processing would be 60.00, a 1-3 percent processing fee would not merit taking 5% of an employees total cc tips. Maybe I'm way off, and I'm certainly not doubting you as you're probably more knowledgeable than I am.

Just seems crazy to me as the employer is seeing 5/6 of the total credit card amount

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Not saying you're wrong but I can't see anyway this is legal. Cc fees are an agreement between the merchant and the credit card processors, not the processors and the merchants employees. Now maybe there is some fine print in the employment packet allowing this that the employee signed off on, but it sounds completely illegal.

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But the business owner still has to fork out the processing fee for the money tipped to an employee. What would end up happening is the employer would just stop putting the line to allow credit card tips to be added, and the employee would just stop getting tips from people who didn't carry any cash in the restaurant.