I love to eat out, I mean, LOVE it! And if you’re anything like me, you probably have a favorite spot where they even know you by your first name! But it’s no secret in this tough economy that more and more businesses are struggling to keep their doors open. I don’t know about you, but I would be bummed if my favorite pizza place had to close down.
So for those of you who support your local spots, there is a way to help them out even more: Don’t put your tip on your credit or debit card, try and leave a cash tip instead.
Card processors charge the restaurant a percentage of the total bill (including the tip) that you put on your credit or debit card. So your favorite restaurant may be paying up to two percent or more on tips, sales taxes and even to-go orders. But at the end of the day, they still have to pay out their servers the full tipped amount. So let’s say you leave your server a 20 percent tip on the card, the restaurant ends up paying out her share in addition to the credit card processor fee on top of that. And this adds up to more than the original 20 percent you left! In this economy, where every cent of profit counts, that can make a big difference. So give your hot spot a break and pay tips with cash!
Happy eating and until next time,
Nayla
Wow, I am so guilty of using my debit card ... ALL THE TIME! I am totally gonna start paying my tips with cash now ... thanks for the tip!
Posted by: Kim | April 07, 2009 at 09:12 AM