Is it legal for a business to accept credit cards but not allow me to add a tip?

Question

The nail salon I go to usually wants me to pay with cash which I think is strange considering they advertise that they accept credit cards and checks. Recently, I tried to pay with a credit card and was told they don't allow customers to add tips on the card. I didn't have cash, so I had to write a check for the whole amount (the service and the tip). The manager asked me to leave the payee blank and I assumed he would put the company name on there with a stamp. Once the check cleared my bank account, I noticed the check was made payable to an individual. Is this legal? I feel as though this is fraudulant activity. I don't know who to report it to or if there is anything that can be done to prevent them from getting away with this.

If a company accepts credit cards can they prevent the customer from adding a tip?

Would love some advice on this. I know I can go to a different salon, but I still think this is not fair to the customers.

Thanks.

Answer 1

Huh? So a business has some goofy payment policies and you are looking to report them to The Office of Not Happy with the Way a Business Accepts Payments.
Sorry to digress, but the first thing is real simple....mind your own business. Fraudulent activity? Sorry again way over reacting. I think I can see what you mean, but you wrote the check and you left it blank. And by the way, even if you put the name of the salon on the check, a check can be endorsed and then given to another person. It is called a holder in due course. Not common, but perfectly legal.
As for the name, most small business accounts are in the name of the person and business, and again who cares.
Ok for the tip. They can manage their credit card policy however they want. They most likely do not want tips on card sales as when they do their accounting, the tips have to be tracked and subtracted from sales, ie 1200 in credit card transactions minus 140 in tips, actual sales 1060.
And they have to reopen the ticket on the credit card machine and add back the tip. There may be a charge for that from the processor.
Also some employees push the employer to not accept credit card tips as they want to be paid in cash.
I think your best bet is to just find another place to go that meets your needs. Or go back tell the manager you want to continue to come to the business, but don't want to have to jump through a bunch of hoops to pay. See if you can agree, for example you will write a check or pay with credit card, but not spilit out the tips.

Answer 2

I wouldn't leave the payee blank, if I were you... sounds like someone cashed your check right into their own pocket! If you go there regularly, I would have either payed with credit card and then written a check for JUST the tip directly to the one who did your nails... OR I would have said "I'll catch you on the tip next time" It's not a REQUIREMENT that you tip... and you could have made a point to come back later or double tip the next time.

You could report it to the manager of the salon first, and ask who the individual is that the check was addressed to... if the manager/owner doesn't care... then I don't knwo that there is much you can do since they didn't take the incorrect amount out, if that makes sense.

Answer 3

If it's a locally owned nail salon, I would imagine having the check written out to the person is OK. Was this an Asian establishment? Perhaps it's easier for them to have you leave the check blank if their name is hard to pronounce or spell. As for the credit card thing.. that sounds weird. I guess next time just make sure you have some cash (ones or fives or whatever you tip) and if you want to use credit, do it that way. Otherwise I'd suggest going elsewhere. Most places that provide tip worthy services should have a tip option if they offer credit.

After reading other people's posts, I'd have to kind of agree on not tipping them at all. Not your problem.

Answer 4

IANAL - but yes I think it is legal on both the credit card thing and the check. IF you write a check with the "To:" line blank the bank would treat it as cash anyway and let anybody cash it. You have to accept that they can fill it out any way they want. To avoid this always write a name in that line. I really don't see what the big deal is tho.. you got your hair did right? What difference does it make who gets the money? Carry cash if you are that worried about it.

Answer 5

No, it is not legal to change your tip amount. I agree you should call the restaurant mgr. If this does not work , dispute it in writing with your credit card company. Even though it is only $2, your server may be altering several other customer slips. I would definately stand up for what is right and mgmt needs to be alerted. The only time a restaurant can add a gratuity to your check is if it states it on the menu and this is normally for large parties. This would be on your total check before you sign. Good luck.

Answer 6

Of course its NOT illegal. They can do whatever they want with payment methods. This is very common in service oriented jobs where people work on tips alot. Often its common in job where illegal aliens are working also. Then they dont have to report the cash thats going to the illegals.

Answer 7

Im not sure the check thing is legal at all. but ultimately you would be giving that money to someone at that salon anyway...
as for the credit card tipping... its better for you. if they dont accept tips then dont give them one. thats their fault.

Answer 8

That's not right

Answer 9

Contact the Better Business Bureau - they'll tell you what to do.

Answer 10

They aren't paying tax on their income there, simple as that.