Wednesday, October 08, 2008

Tip Greed

Do you know that some restaurants charge the waiters a credit card fee if you put the tip on the bill when paying? There was an article in the paper about it Sunday. The owners of the establishment get charged 1.8% to 3.5 % of the total to accept your credit card as payment. They are now passing the percentage of the bill that is a tip onto the waiter by deducting from the total amount of tip. Nice, huh? And you don't know it unless the waiter happens to tell you.

The average a waiter makes including tips in the US was $8.93 an hour as of 2007 according to the Labor Statistics. It did not say how many establishments are doing this percentage thing, but now that its "out in the open" I am betting a lot more will do it now that it's "legal".

I think we should all now go out of our way to place the tip in the waiter's hand-don't leave on the table because you don't know who will get it. Give it to the waiter and say thanks. I used to do this because I wasn't sure if they actually got the tips-now I will make sure they do.


  1. This starting happening back in VA to me while I was in college and waiting tables at Don Pablos. This would have been before 2000, so I am completely aware of all of this. This is great that you are passing this along!

  2. Yes, this has been going on for years! I also leave any tips that are for service people in cash in their hands! Including my hair dresser. They pay big bucks for their stations and I don't want them to loose any of that tip to some other kinda fee!

  3. Wow, thats interesting. I usually try to tip in cash anyways so then they don't have to claim it.

  4. Anonymous10:59 AM

    Jan, that's a crazy practice. It reminds me of the fee some of the pizza places charge for their driver to deliver to your house. The driver doesn't get a tip unless you give it to him. Thank you so much for making me aware of this. By the way, I so love your blog style - you sure tell it like it is!!
    --Big Hugs Becca

  5. I know many of the servers and delivery drivers made more than my dh made as a manager for a major pizza chain. I would guess that the $$ figure they quoted is on the low side. Regardless, the cost of credit cards should be held to the owner of the restaurant, not the server.


  6. Thanks for passing this information, is good to know about it!!

    Sorry I haven't been a good sista lately!! I have a busy semester this year! but hopefully I'm finishing everything! so I will visit more often!!

    Merry Christmas!



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