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For example, when using your credit card, would it be easier for the waiter if you tipped $4.90 to make the total bill $25, or would it be easier for the waiter if you tipped him $5 to make the total bill $25.10? Which is the easiest amount for the waiter to subtract from the bill?

2006-12-27 04:28:36 · 14 answers · asked by Anonymous in Dining Out Other - Dining Out

14 answers

The waiter doesn't subtract anything. The check total is entered into the credit card terminal, or remembered by the computer, when the card is swiped, then after the guest writes in the tip and signs the slip, the waiter goes back in and enters the tip as part of closing the check. In terms of convenience, it makes no difference what the numbers are.

The reason many servers prefer cash tips is not that they're more convenient, or that they may be larger on average (which is debatable in my experience), it's that there is no paper trail on them. In restaurants that take credit cards, which of course is most restaurants, the great majority of tips are charge tips. Servers must (or at least should) declare all their charge tips, because there's no way to hide them, but they get charged income tax on whatever they declare. Cash tips can be hidden and remain tax-free, should the server so desire.

By the way, any restaurant that passes on credit card transaction fees to its tipped employees, as one respondant mentioned, is in violation of the law and should be reported to the local business licensing agency. A couple of anonymous phone calls should be all it would take. They probably won't get closed down, but they will definately be told to knock it off and suck up the transaction fees as a cost of doing business. A smart restaurant manager will recoup those fees by building them into the menu prices anyway, just like the costs of paying the cooks and washing the dishes and turning the lights on and all the other expenses the business has.

2006-12-27 07:43:09 · answer #1 · answered by cwfritz11 1 · 1 0

It really doesn't matter to me if it's easier for the waiter or not. Someone will figure that out at the end of the evening.However it is easier for me to make the bill even when keeping up with a checking account.

2006-12-27 12:39:48 · answer #2 · answered by Sk8rmom 2 · 1 0

A dime isn't gonna make or break a server. My advice is if it's your debit card, round to the nearest dollar to make it easier to balance your account. If it's a credit card and you carry a balance, tip in cash. You will just be paying interest on the tip for as long as you carry a balance. Some restaurant chains either keep the servers credit card tips til payday or even worse, charge them the 1.5% finance charge that the house pays on credit card transactions. Tip in cash if you can. It makes everyone happy, except the banks making interest.

2006-12-27 13:21:10 · answer #3 · answered by William H 2 · 2 0

Honestly, the computer system tracks that so as long as the tip is 20% for good service, tip however you like.

As cwfritz pointed out, the reason servers would prefer cash is mostly because they can get out of declaring that income. I generally tip in cash because I figure they're getting screwed out of being able to contribute to their health insurance pre-tax, to their 401Ks pre-tax, etc... If they want to cheat on declaring it's none of my business. Their $2/hour wage doesn't cover their taxes let alone those things. (Some states have higher server minimum wage, but the federal server minimum is $2.13/hour.)

However, one minor correction: a restaurant may legally subtract from a server's tips the proportionate percentage that they are charged by their credit card processor.

If they pay 3% to Mastercard/Visa/Amex/Discover, they may pass on 3% of the servers' credit card TIPS to the servers, but not 3% of the servers' total charges. It's a minor distinction and a bad business practice, it breeds bad morale, and I'd never work for a company that does it, but as late as 1999 it was legal in (at least) PA, OH, and MI.

2006-12-27 18:13:04 · answer #4 · answered by magsgundah 3 · 1 0

The whole $5 is easier, the extra 10 cents won't make or break a person. Cash is always more convenient. But I just want to say kudos for suggesting a 20% + tip.

2006-12-27 14:57:13 · answer #5 · answered by rosie girl 2 · 1 0

It's easier for the waiter if you tip the $5, it makes no difference to him/her what the grand total is. Although, like someone else said, it's better to just tip with cash.

2006-12-27 12:37:54 · answer #6 · answered by Harry_Cox 5 · 1 0

I usually try to pay the tip in cash and put "Tip on table" in the tip field so noone puts in their own choice of tip.

If I pay the tip by credit card, I round it up so my total charge will be an even dollar amount ($25.00 instead of $24.89).

2006-12-28 18:11:02 · answer #7 · answered by Terri 7 · 0 0

tipping cash is easiest for everyone.

if not using cash, make the tip round. who wants a tip of 4 dollars and change??

don't be worried about the total bill not being round. this doesn't make it harder for them in any way. all they do is go back and punch in the new amount. it literally takes a few seconds.

2006-12-27 12:37:36 · answer #8 · answered by morequestions 5 · 1 0

Always round up. A little change can go a long way. Just think if 30 people gave you an extra 10 cents a day, that adds up in a year.

2006-12-28 18:03:04 · answer #9 · answered by Black Rose 4 · 1 0

I would say honestly that every cent count's so make it as much as you can who cares if the total is off.... but to tell ya no server likes a tip on C.C ........ cash tip is the best FYI.....

2006-12-28 00:52:13 · answer #10 · answered by dafaithfulll1 2 · 1 0

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