When You Should Tip in Cash and When You Shouldn’t
Tipping isn’t an option in many situations, though you can still choose how you tip.
If you’re aware of tipping etiquette, you presumably already acknowledge and respect that tipping is a must in many circumstances. When dining out It’s absolutely crucial, assuming many workers of restaurants are paid less than minimum wage with the difference compensated in tips. There are other situations as well, where you really want to tip, for instance, tipping your hairdresser or a massage therapist, to keep up a relationship with a professional you trust.
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It is difficult to understand every situation where you should tip. For many individuals, trickier is figuring out when to tip with cash or a credit card. In multiple situations, you can add a tip to your bill, if you pay with a credit card you can put the charge on your card together with the charge for the meal/service. But for the service worker (person receiving the tip), tipping with a credit card isn’t always the best choice.
Foremost, there can be uncertainty in processing credit card tips, because of this the workers may have to wait until the next payday to get the money. Not receiving daily tip money can put a tremendous strain on their finances, if they’re struggling to make ends meet. Another reason why tipping with a credit card is not always the best choice is that for each transaction, restaurant employers must pay credit card companies a percentage, and employers are allowed to take that percentage out of employee tips according to U.S. Department of Labor regulations. Lastly, you may miss out on the opportunity to tip workers where no credit card transaction takes place (such as movers or valets) if you’re always relying on a credit/debit card to tip.
Read on for situations where it’s best to tip in cash and one where tipping with a card is better, If you’re committed to tipping well and want to make certain your tips are ending up in the right pockets
When to Tip in Cash
Restaurants and Dining Out
This might not apply, if you are accustomed to fine dining, it’s unlikely to expect anyone to hold cash on hand to cover the considerable tip on a bill that is a couple of hundred dollars. If your restaurant tips tend to be $30 or less, and unless you are paying 150 USD or more on each meal, you can definitely carry sufficient cash to cover that 15 to 20 percent (or even more) tip.
The majority of food industry servers favor cash tips. They receive that money immediately, instead of potentially having to wait until the following payday to receive credit card tips. So, after using your credit card to pay the bill, in case if you have the cash, try to leave your tip on the table.
Coffee Shops (also Other Places With Counter Service Only)
Generally, tips are not expected, if you are not being served your food. Nevertheless, baristas and other employees at coffee shops and bakeries often put out a tip jar. A little contribution to their funds is the right thing to do, specifically if you’re a regular customer and if they’re making minimum wage (which they probably are). However, the advancement of electronic tipping on a credit card keypad does annoy many customers, who feel forced to tip 20% to the cashier who simply gave them an already overpriced coffee or cake. Be certain that in these situations you have every right to tap “no tip.”
If you want to treat your favorite sandwich shop worker or barista right, each time you stop there, keep a few dollars or even change on you to put in the tip jar. Keep in mind that when you do tip with a plastic card, it has the aforesaid percentage taken out of it as a transaction fee.
Nail Salons (also Any Place That Says Cash Gratuities Are Appreciated)
You should really tip in cash when an establishment asks you to please tip in cash. It is impossible to know what dynamics or politics are happening behind the scenes at each salon, and there’s a reason they ask for cash tips, so you should trust that. Credit card tips may not even be accepted by some employers on behalf of their employees, which means that if you don’t have cash, the person who just perfectly polished your nails will get no tips. Keep cash in your wallet and give a little monetary gratitude to the worker.
Complimentary Services (Valet, Coat Check, Room-cleaning, or Porter Services)
Most etiquette of tipping says to tip $2 to $5 for valet parking and $1 per item at the coat check; for bellhops and porters, $1 to $3 for each bag is fine. In these situations, there’s not even an option to pull out your card because you’re not paying for the service itself, so it’s especially crucial to plan to tip in cash. If you do not hold cash it means you are not going to tip at all, this will probably earn you a few dirty looks and likely a good bit of remorse.
Food Delivery
If you’re ordering food through delivery apps, it is especially important to tip in cash. Certain food delivery apps include tips into the promised fee they pay workers per delivery, so your tip for thoughtful service or speedy delivery simply saves the company a little money. Workers don’t get the full tip.
Any Service You Are Paying for In Cash
If you have an agreement with your house painter or lawn care service to pay for their services in cash, you should tip in cash, as well. Don’t rely on a card transaction to cover the cost of the tip on top of the service cost if a plastic card never enters the payment conversation. You just need to withdraw a little more for tipping.
Services With Prior Payment
For instance, you bought brand new appliances from a large business that offers to charge a delivery fee at the time of purchase or offers free delivery, and when the large, heavy items arrive, though you have already paid for everything, you still need to thank the delivery team for their job, especially if they have to do something above and beyond just dropping the items at your door (carry the items up or downstairs). In this kind of situation, you will want to have cash on hand to give to the movers doing the work, beyond what you have already paid for.
The One Time It Is Always OK To Tip With A Credit Card
If cash tipping means leaving less tip or no tip at all, put the tip on your card. Any service employee will take more considerable tips on a credit card than when tipping in cash.
In the situations where putting a tip on a credit card really isn’t an option (tipping housekeeping, valets, movers, etc.) and you do not have a single dollar on you, ask if they use any money-sharing services. Service workers (especially younger ones) may have accounts, and you can send money straight through them. For some people, that may be even better than cash, but don’t suppose that to be accurate for everyone.
