Servers and staff live on tips. With typically low base pay, servers and bartenders all strive to give the best customer service possible, in order to increase their tips. Under tip sharing systems, even more emphasis is placed on giving the customer the best experience possible. As such, your restaurant staff is highly invested in your system of tip distribution—they’ll need to know that it’s fair, and that it works. So, understanding how your restaurant’s credit card tip processing system works can help you reduce staff turnover, by helping you implement a tipping solution that works for your staff, your customers, and your business. Letting the Benefits of Credit Card Tipping Guide your Processing Decisions The best place to start in solving the tipping problem is to have all of your options laid out on the table in front of you. Ultimately, you have two paths to choose from: a mixture of cash and digital tipping, or to move to a digital tipping only strategy. Both options present you with their own set of pros and cons, and it is important that you understand the aspects of both in your decision-making process around how tips should be processed. Cash tipping is not going away anytime soon, despite the steadily falling usage of cash in the United States. In many rural areas, cash still remains king, and many urban area restaurants, cafes, and food trucks still only accept cash. Many restaurants and cafes that accept cards only do so if a minimum purchase amount is reached, typically $5 or $10. Cash is convenient, but also makes the distribution of tips in a tip-sharing restaurant very difficult to track, and is heavily reliant on the honor system. Utilizing credit cards as a primary method for processing tips makes the most sense when you consider the ease in which tips can be tracked, personalized. This makes credit card tips more transparent than cash tips, makes automating payroll and tax reporting much easier. Leaning heavily on credit cards and digital tipping contributes to fairness and transparency in the process, which in turn improves the morale of your staff. It is worth noting, however, that a couple of key technical components must be addressed to achieve the maximum potential of credit card tip processing. The Key to Credit Card Tipping Success is Your Payment Processor Payment processing is a necessary expense and requirement for anyone accepting credit or debit card payments, as well as digital wallets or e-payments. Accepting credit cards is much more involved than swiping a card and having money appear in your banking accounts. It takes precision record keeping, security upgrades and patches, and adding new POS functionalities to stay up to date with the latest in payment trends. As you seek to move towards using credit cards as your primary method of tipping, you must start first with understanding how to ensure that your payment processor is an asset and not a liability. There are clear signs that will signal to you that your payment processor is not up to the task of helping you accept payments in your restaurant. Examining the terms and conditions of your payment processor is a good start point. You must be certain that your payment processor can accommodate a changing business environment. They must be restaurant-friendly, and not force you into a situation where a minimum payment amount must be established. With a flexible payment processing solution in your tool belt, you can then turn your focus towards integrating the next-gen technology you need to drive your tipping initiative forward. Using the Robust Ability of a POS Solution to Manage your Tipping Data The basic fundamentals needed to accept credit card payments have always been a card reader device and a POS terminal. As modern technology has stepped up and added tap payments, EMV cards, and over-the-air (OTA) payment acceptance terminals, POS solution providers have had to step up their game. Security has moved to the forefront of everyone’s minds, and you must be able to adapt to consumer-driven payment types while still managing a secured and accurate tipping process. Using a modern POS solution gives you the required tools to create a transparent and precise tipping process. An updated POS platform makes it easy for you to monitor per-staff tipping, which can be automatically added directly to their paychecks. Tax reporting is highly accurate, and tip sharing is accomplished without the need for manual intervention. Best of all, the cloud-based data management functions allow you to readily monitor it all from the convenience of a smartphone app. Employees can readily view their paychecks, tax information, and tipping reports on their own smartphones. This opens the door to high levels of transparency and can reveal to you and to others who may be in need of additional training. This creates more opportunities for growth within your restaurant and ensures that your staff keeps growing professionally and personally. The new features of your POS platform will make credit card tip processing easy and will drive customer service to new levels of excellence. Let a Friendly POS Consultant Guide Your Restaurant Credit Card Tip Processing Efforts Relying on credit cards for tipping will inspire a wide range of improvements in all aspects of your restaurant operations. Improving the visibility into how tips are being dividend and paid out will greatly improve staff morale while providing you with the insights needed to better the customer service that your team delivers. The best part is that most of your tipping process can be automated, freeing you to be the friendly and engaging host or hostess that customers come back to visit regularly. Designing the technical aspects around how credit card tipping is best processed requires in-depth knowledge of both restaurant technology trends and POS innovations. Using an expert consultant that checks the box of these boxes assures you of gaining a top-level and highly capable POS solution that drives the expansion of your brand. You and your restaurant deserve the best POS technology, and we are here to help you do just that. Engaging talech gives you more than just a POS solution provider. We take the time to learn your business inside and out so that the solution we recommend and implement for you represents exactly where you are and where you want to be down the road. Reach out to us today to sign up for a free demo and find out how we can help you to create the perfect fine dining experience for your customers.

How Does Restaurant Credit Card Tip Processing Work?

Servers and staff live on tips. With typically low base pay, servers and bartenders all strive to give the best customer service possible, in order to increase their tips. Under tip sharing systems, even more emphasis is placed on giving the customer the best experience possible. As such, your restaurant staff is highly invested in…

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