“Tips must be given in cash and cannot be charged to a card!”
Posted: Tue Jan 07, 2025 4:37 am
Card payment only from 10€!”
We hear it all too often, but is it still appropriate today? We don't think so! Tying the option of paying by card to a minimum amount on the bill, when the fees are calculated as a percentage anyway, is not well received by guests. You also put the employees who have to deliver this message in an uncomfortable indonesia phone data situation. After all, they have to justify it to the guests and often just shrug their shoulders apologetically.
If you accept both card and cash payments in your restaurant, there is of course double the handling effort. Restaurants and cafés that only accept cashless payment options have an advantage here. The time saved in daily billing is usually more or less offset by the fees charged by the payment providers. In addition, the number of card terminal providers is increasing and transaction fees are falling, which makes card payment even more attractive as an alternative.
How high are the employee costs in your company for daily tasks related to cash, e.g. opening and closing the cash register, counting the cash on hand at shift changes, getting change and depositing cash at the bank?
Of course, tips can only be received tax-free by employees. If you receive them as a restaurateur, you have to pay tax on them. So is there a solution that makes it possible to avoid taxation even with card payments? Yes! If it can be shown transparently and without gaps that the tip was given to a specific employee. It may be a bit more complicated to set this up, but a good tax advisor should be able to help you here.
All information on the subject of taxation and distribution of tips can be found in our blog post: Tipping in the catering industry .
We hear it all too often, but is it still appropriate today? We don't think so! Tying the option of paying by card to a minimum amount on the bill, when the fees are calculated as a percentage anyway, is not well received by guests. You also put the employees who have to deliver this message in an uncomfortable indonesia phone data situation. After all, they have to justify it to the guests and often just shrug their shoulders apologetically.
If you accept both card and cash payments in your restaurant, there is of course double the handling effort. Restaurants and cafés that only accept cashless payment options have an advantage here. The time saved in daily billing is usually more or less offset by the fees charged by the payment providers. In addition, the number of card terminal providers is increasing and transaction fees are falling, which makes card payment even more attractive as an alternative.
How high are the employee costs in your company for daily tasks related to cash, e.g. opening and closing the cash register, counting the cash on hand at shift changes, getting change and depositing cash at the bank?
Of course, tips can only be received tax-free by employees. If you receive them as a restaurateur, you have to pay tax on them. So is there a solution that makes it possible to avoid taxation even with card payments? Yes! If it can be shown transparently and without gaps that the tip was given to a specific employee. It may be a bit more complicated to set this up, but a good tax advisor should be able to help you here.
All information on the subject of taxation and distribution of tips can be found in our blog post: Tipping in the catering industry .