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    Home»Personal Finance»4 ways to handle point-of-sale tip requests
    Personal Finance

    4 ways to handle point-of-sale tip requests

    January 28, 20234 Mins Read
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    Someone hands a credit card to a cashier.

    Image source: Getty Images

    To quote the late Nancy Reagan, “Just say no.”


    Key points

    • Consumers are increasingly being asked to supplement employees’ salaries by tipping on everyday purchases.
    • Don’t wait until checkout to figure out who is (and isn’t) on your “tips list.”
    • Tipping is not mandatory – you control who earns a tip for great service.

    If you haven’t encountered point-of-sale (POS) tipping requests yet, you definitely will. Point-of-sale tipping requests are popping up everywhere, from concession stands to automatic car washes. That’s right. Some automatic car wash owners would like to get paid and then tip, even if no employees are involved.

    How it works

    Here’s an example of how point-of-sale tip requests work. You walk into a store to buy a new top, choose the item you like, and pay for it with a credit card. The store clerk swipes your card, then returns the card reader to you for a signature. Rather than finding a line to sign your name, you find a prompt to leave a tip. Retailers determine tipping suggestions, but they typically range between 10% and 30% of your total bill.

    How you can manage tip requests at the point of sale

    No matter how great the pressure may be to make the person across the counter happy, you have a choice when asked to tip.

    1. Just say no

    Hit the no tip button and walk away with a clear conscience. Only you decide when tipping is appropriate.

    2. Create a list of tips

    Etiquette expert Thomas P. Farley, better known as “Mister Manners,” told ABC7 New York he had a tip list and only three people were on the list: servers, bartenders and waiters. toilet attendants. On your tip list, include anyone you would usually tip uninvited. For example, you can include your barber, your hairdresser, or the person who cleans your hotel room.

    3. Stick to the List

    Tattoo the list in your mind so you never leave home without it. Pushing “no tip” at the request of someone who doesn’t make the cut is a smart way to leave money in your Bank account.

    4. Pay cash

    If you want to avoid the inconvenience at checkout, pay in cash. This is especially useful when you plan to shop at a store that will ask for a tip. It’s a win/win. You have no one watching what you do, and you have nothing more credit card debt to pay off.

    The deception behind point-of-sale tipping requests

    As you stand there trying to figure out if the service you received is worthy of a tip, the employee who handled your card stares at you, waiting for your response. Although tipping is intended to reward excellent service, studies have shown that most people are motivated by social pressure to do what is expected.

    Imagine that you are walking through a store, buying a gift. Although the store clerk doesn’t help you find what you’re looking for, he’s friendly and engages you in a short conversation. Now, instead of leaving the store thinking how nice that employee was, you’re asked to rate their friendliness by leaving a tip. And that’s it while they watch you from across the counter.

    Harry Brignull is an expert in how design can manipulate people into making specific choices. In an interview with Vox, Brignull said, “It’s easy to walk the line between honest persuasion and harmful manipulation.”

    Brignull explains that touchscreens sometimes emphasize buttons that leave a big tip. However, they dim the button which leaves no tip. In the industry, this is called “dark models”.

    A growing trend

    ABC7 News in New York spoke with Dipayan Biswas, professor of marketing and business at the University of South Florida.

    Biswas – who has studied tipping for a decade – says companies allow tipping to make jobs more lucrative for their employees. The employer does not have to raise the employee’s salary if the customers are willing to pay the bill.

    As the practice grows, there are concerns that more companies will adopt point-of-sale tipping requests to keep their employees happy. It is up to you to determine if you are ready to supplement their income.

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