Tipping Fatigue: Tip requests getting out of hand?

As more companies implement new high-tech payment methods, the more you are being asked to pay.

Result: Whether you’re paying for a service in person or by phone, you’re more likely to come across three short words these days: “add a tip.”

But a growing number of consumers are wondering if those 15-25% of tip requests are out of control.

Jamal Potter and Jared Metz, who dined al fresco on a recent warm day, said that every time they get food or coffee, the pressure builds thanks to new “point of sale” systems that reward tips on every purchase.

“I always feel like I have to tip everyone in every industry,” Metz said.

“It’s kind of pressure when they flip that roster on you,” Potter said. “You can’t say no, you don’t want to be rude.”

Customers became much more generous in the early days of the pandemic in support of restaurants and other businesses, and while life is almost back to normal now, the trend has never stopped.

Rapid growth with the advent of new payment systems

Tipping at full-service restaurants rose 25% in the third quarter of 2022, according to payments company Square.

Square reports that for counter-service restaurants, tips are up nearly 17%, possibly due to the widespread use of rotating “POS” card readers.

NerdWallet’s Kimberly Palmer says digital payment methods are replacing old tip jars, making tipping difficult.

“First of all, it is very important to recognize that tips are optional, but are expected in certain situations,” she said.

However, Palmer says it’s easy to go over budget.

“Often we feel that other people can see what we are leaving, maybe even the employees themselves, so it can feel a bit uncomfortable,” she said. “So I think it’s really worth just thinking; you can refuse to tip if the situation does not require a tip.

How much should you tip?

According to NerdWallet:

• Waiters and bartenders should receive 20%.
• Minibus taxi drivers: from 15% to 20%.
• Food delivery drivers: 15% to 20%.
• Spa or beauty professionals: 15% to 20%.

Palmer says if you can’t afford a tip, it might be time to rethink buying, like a $5 latte.

Shopper Trisha Kelly says if 20% seems too high for a snack or coffee, you can tip a little less.

“I don’t mind it because I can always tip,” she said.

So you don’t waste your money.

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