Paying and tipping at a restaurant with a card | Page 3 | TigerDroppings.com
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BigJake
LSU Fan
Baton rouge
Member since Jan 2006
1124 posts

re: Paying and tipping at a restaurant with a card

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.

That being said, we don't withhold credit card fees from our servers. We do pay them credit tips biweekly, because they all preferred that method to taking tips home everyday.

This post was edited on 5/19 at 3:39 pm


J311slx
LSU Fan
Denham Springs
Member since Sep 2011
1817 posts

re: Paying and tipping at a restaurant with a card
quote:

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.


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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Dac311
LSU Fan
Baton Rouge
Member since Dec 2011
247 posts

re: Paying and tipping at a restaurant with a card
quote:

Most places you get your money at the end of the shift. There are many where there are so many servers and high tip amounts that employers have taken to putting credit card tips on a weekly (or every other weekly) paycheck.... which SUCKS, trust me


Yeah. Living like the rest of the world and getting paid weekly or biweekly sucks. We wouldn't know anything about that. Oh yeah, you still get a little cash to bring home every night from cash tips.


Dac311
LSU Fan
Baton Rouge
Member since Dec 2011
247 posts

re: Paying and tipping at a restaurant with a card
quote:

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.


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.


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Pierre
LSU Fan
Baton Rouge
Member since Nov 2005
4149 posts

re: Paying and tipping at a restaurant with a card
quote:

Yeah. Living like the rest of the world and getting paid weekly or biweekly sucks. We wouldn't know anything about that. Oh yeah, you still get a little cash to bring home every night from cash tips.


+1


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