I was absolutely flabbergasted by a series of online posts by diners who say they were scammed by restaurants into tippling more than they intended to. They say some electronic payment systems’ digital tipping screens may be ‘lying’…
Disbelief ? Or outrage?
Social media denizens are divided on whether the ‘tipflation’ that occurs in many digital tipping systems is intentional or due to flaws in the point-of-sale software. Or are the systems simply calculating tips on the full price of menu items that are currently on ‘special’?
I think it’s important to note that the posters are giving the systems and resto operators the benefit of the doubt. But at the same time, many posters have noted that the inflated tips added to their bills far exceed the amounts that should have been added.
What’s going on?
The New York Post first reported on what it calls ‘the new tipping scam’…
“Instagram user @big_beau7 posted a video showing the screen of a credit card reader that read “Choose A Tip Amount.” The Post relates. “The screen provided options for 15%, 18%, 20% and 25% — but the dollar amounts were more than they should have been for each percentage chosen.”
When big_beau7 selected the ‘15%’ option, the amount came up as $6.22 – when it should have been $4.05. (See photo, left.)
One issue transparent
One reason for the discrepancy between the digitally calculated tip and the ‘real’ amount was clear. The small print on the tipping screen says: “Tip calculated after Tax and before Discounts.”
What the…? Who tips based on the amount of the bill after tax has been added? And why would the resto calculate the amount of the bill (for tips purposes) without figuring in any discounts that apply?
The principle of tipping has always been that the diner bestows a tip on their server as a gesture of appreciation for good service. In modern times (the last half of the last century) it’s become common to calculate your tip based on either a standard percentage that you tip, or award an amount you feel fits the dining experience you’ve enjoyed. Adding in the tax and not allowing for discounts is just bad form. Maybe even calculated skullduggery.
Tips still inflated
But that’s not all. Some posters noted that, even with the tax in and discounts out, the amounts calculated by the digital tipping screens were still higher them they should be.
That’s where the posters allow that the systems may be flawed. But doesn’t make sense that manufacturers would put systems into use in the market without ample testing and tweaking to make sure they were working right. Especially when money is involved.
High ‘suggested’ percentages
Another issue that’s kind of off to the side, but still closely related, is the elevated suggested tipping amounts on almost all digital systems.
Most folks previously juggled 10 percent versus 15 percent when considering how much to tip. If they were going to leave a tip at all. Now tipping screens start at 15 percent and go all the way up to 25 percent or more, in more-or-less equal increments.
This ‘trend’ been a bane on diners since it first appeared a year or so ago.
Why so high?
One theory that attempts to explain why suggested tipping amounts have surged in the post-COVID era is that resto owners are ‘supporting’ employees who need higher incomes to make ends meet.
The new Fast Food workers’ minimum wage in California is one major indication that the burger joint employee demographic has changed. A few years ago, it was largely high school kids getting their first real job experience. Now, more and more post-high school-aged people and seniors are getting into the act. And the new younger adult group say they need to make a living wage.
But should we be subsidizing the restos by awarding their employees higher tips? I, for one, feel the restos should be charging what their meals and ambience really cost on their menus. More or less the California situation, but on an unofficial, unenforced basis. Diners can then decide, on a more transparent basis, where they want to eat.
Are the restos skimming?
And… There’s yet another dimension to tipping culture corruption. For a long time, servers have complained that the restos have been skimming any tips that diners leave digitally, rather than in cash on the table. In other cases, employees have complained that the house has been skimming a take off the top of their tips for itself. That’s just wrong – but, technically, not illegal.
No matter how tips ‘redirection’ takes place, it’s another clear indication that the tipping culture – particularly in North America – is rotten.
IS tipping out of control?
A recent survey of American consumers and foodservice workers revealed that 76.1 percent believe tipping has ‘gone too far’.
And a survey from in June 2023 revealed that two-thirds of Americans have a negative view of tipping,. And 1 in 3 Americans think tipping culture is out of control.
My take
I’m appalled at the collective state of tipping in my culture! If restaurants can’t ‘make it’ without skimming, stealing or scamming tips from their employees and customers, we’ve reached a scummy pass, indeed.
And I think that, perhaps, the restos that have resorted to such ugly revenue-raising tactics are just avoiding the inevitable. Their business models just aren’t working in the new economy…
~ Maggie J.