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re: Restaurants charging 4% for using credit card

Posted on 3/19/22 at 3:32 pm to
Posted by dirtsandwich
AL
Member since May 2016
5258 posts
Posted on 3/19/22 at 3:32 pm to
quote:

said the fee gets taken out the servers tip if it’s done on a card

Never heard or seen that anywhere. Pretty sure it would be unlawful.

Edited to add that I’m apparently uniformed based on the replies below. Still doesn’t seem right to me but I’ve been out of the game for a good while.
This post was edited on 3/20/22 at 1:17 pm
Posted by LSUJML
Central
Member since May 2008
46987 posts
Posted on 3/19/22 at 3:34 pm to
That’s what I figured but wasn’t going to argue with them
If they want to buy my dinner & tip in cash I’ll gladly keep my mouth shut
Posted by johnnydrama
Possibly Trashy
Member since Feb 2010
8722 posts
Posted on 3/19/22 at 3:35 pm to
quote:

said the fee gets taken out the servers tip if it’s done on a card

Never heard or seen that anywhere. Pretty sure it would be unlawful.



It's very common in the New Orleans area. Has been for years.
Posted by DandA
Mandevillian
Member since Jun 2018
835 posts
Posted on 3/19/22 at 3:53 pm to
quote:

Never heard or seen that anywhere. Pretty sure it would be unlawful.


It's pretty common. At my place, we have a 4% processing fee that comes out of credit card tips. The owner pays 2% and the bartenders pay the other 2%. For example, yesterday my morning bartender made $450 in credit card tips, so they only "paid back" $9. It's a relatively small amount based on how much they made in total. But, my bartenders pull in about $1500 a week so that 2% doesn't really impact them that much. It's completely different for servers/bartenders scraping by making $40 to 50 a shift who need every penny they can make. It's just one of those dynamics in the service industry. Not saying it's right or wrong, but it exists. Just like most servers making $2.13 an hour.
Posted by tokenBoiler
Lafayette, Indiana
Member since Aug 2012
4450 posts
Posted on 3/19/22 at 3:54 pm to
I always tip in cash because it's harder for the owner to steal it. I'm guessing if the tip goes in electronically, he'll have some say when it gets transferred to the server, if ever.

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