With new EMV cards, tipping is about to get a lot more awkward

[Omaha Steve]

http://www.omaha.com/money/with-new-emv-cards-tipping-is-about-to-get-a/article_6d94c164-4359-5751-be48-065f404999e7.html


BRENDAN SULLIVAN/THE WORLD-HERALD
Store manager Latavia Dunn operates a Clover EMV payment terminal at the Scooter’s at 6110 Irvington Road. All establishments that accept credit cards are required to adopt the new terminals by Oct. 1.

POSTED: TUESDAY, AUGUST 11, 2015 12:30 AM | UPDATED: 12:38 AM, TUE AUG 11, 2015.
By Cole Epley / World-Herald staff-writer

Let’s say the waitress forgets to refill your water and brings you the wrong entree. Come time to pay, you can avoid a face-to-face confrontation and simply signal your displeasure with a tightfisted tip.

Soon it won’t be so easy to leave a goose egg for the server who forgets your eggs: In October, when new microchip-
embedded credit cards become the standard across the country, diners and bar patrons will have to make their tips known before their cards are swiped.

Gone will be the days of scrawling a hastily calculated tip on a receipt. Paying with a chip card will require customers to either tell servers a tip amount before a transaction is authorized or ask customers to key in a tip themselves if an establishment has a tableside checkout terminal.

It’s all because of an Oct. 1 deadline for merchants — including restaurants or any other establishment that accepts credit cards — to upgrade to new payment terminals designed for the microchip-embedded cards, also known as EMV cards.

FULL story at link.



The Associated Press

New microchip-embedded credit cards require restaurant patrons to enter a tip on a bill before the transaction is authorized. Customers can key in the tip themselves at restaurants that offer tableside checkout terminals; otherwise, patrons will need to write the tip on the bill or tell the waiter how much to add.

[hobbit709]

1. I pay cash when I eat out.

[NutmegYankee]

2. The waiter doesn't see the tip amount until after the transaction is complete.

The waiter hands the machine to you, you select a tip (it can keyed in) and then the machine only prints your receipt. The business will print their receipts later.

I've used these in Canada many times. I can't wait for the US to get them.

[rogerashton]

3. You can leave a cash tip at the table --

even if you pay the bill with a credit card. And in that case, the server probably will not pay the full income tax on it. I believe this has been the way of things in Canada for some time.

And to Hobbit: some places it is really difficult to pay cash -- they just aren't accustomed to it. We will probably see more of that.

[hobbit709]

5. I don't go to those kind of places.

I avoid chain restaurants like the plague.

[rogerashton]

14. What does that have to do with chain restaurants? eom

[hobbit709]

15. They're the ones more likely to incorporate this tech at the table.

The little hole in the wall places I eat at have better food.

[Adrahil]

4. They alreqdy do this in the UK.

When i went last year, i had to learn how to do it. The way it is done there is by using the table-side terminals. You key in the tip and the server never sees it. Easy-peasy.

[olddots]

6. this good for no one

[justamama83]

7. How do you figure it's good for no one?

The EMV will protect the card holder from cloned accounts and fraud. It will help the merchant avoid fraudulent charge backs which cost the business money. EMV has been used in Europe for a long time and it's cut fraud by almost 90%- can't say that's a bad thing. Yes, it will take some getting used to - but short term pain for long term gain.

[olddots]

10. oh sorry

Im wrong never mind

[Codeine]

8. How is a safer technology bad?

We were glad when our bank got us new terminals for our store; fraud sucks for a small business.

[olddots]

11. you are correct

I 'm wrong

[CBGLuthier]

9. Always Tip Cash. Fuck the owners and fuck the government because

They will surely fuck the staff.

[Travis_0004]

12. The owners would prefer you tip cash

Lets say you tip 5.00. I pay a transaction fee on that tip, but the whole 5.00 goes to the server, and I loose a bit of money on the tip. If you tip 5.00 cash, then I am better off.

[CBGLuthier]

13. Oh some restaurants have come up with a way to avoid paying the transaction fee on tips.

They take it from the staff.

I was perhaps a bit harsh as some restaurant owners are decent. But between a wife, sister-in-law and 3 kids working in restaurants I have heard too many horror stories for too many years.

But everyone should always tip cash. It is good for everyone.

[justamama83]

16. The server still pays tax on cash

Not sure how they figure it- maybe 10% of their sales? - but giving a tip in cash will not fuck the government and even if he/she gets zip they still get those sales reported....at least that is what I've heard- maybe someone with restaurant experience can confirm how the mgmt reports their earnings for taxes.

[CBGLuthier]

17. Yes, because a server must report every single penny they pick up off a table

There is an assumption that a server will make a certain percentage. Anything above that they can (illegally according to the IRS) pocket. I think the assumed percentage is 8 percent but I have not kept up.

So yes, tipping in cash can have an advantage as there is no paper trail.