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re: Leaving tips ... Cash v. Card

Posted on 11/10/15 at 11:20 am to
Posted by LouisianaLady
Member since Mar 2009
81316 posts
Posted on 11/10/15 at 11:20 am to
quote:

I've never had any fraudulent activity related to tips on my card.


Nor have I. Would be pretty shitty to do since I normally am way too generous with the tip anyway.
Posted by Napoleon
Kenna
Member since Dec 2007
69377 posts
Posted on 11/10/15 at 5:23 pm to
I found out recently that servers are charged a 3% processing fee on credit card tips at most places. The business does not "eat" that fee either. You get it back on taxes. The servers do not. So that's a way for the owners to get the fees covered while still being able to claim the processing fees on taxes.

For that reason I try and tip cash, but I do rarely have cash.

I usually tip $2 at counter and 20% at restaurants and then don't worry about how they pay their fees. Thinking about carrying cash more, but I don't want to pay 5% fee for using the atm either. (figure $5 charge to pull $100 out)
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