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Options for Credit Card Processing Tip Line

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Restaurants and even retail businesses can add a tip line to a credit card receipt.  The general option is to have a line where the customer can handwrite in a tip. Then the merchant needs to adjust the transaction with the tip before batching the terminal at the end of the day or shift.  Batching sends the money to your bank account.  If the transaction has not been adjusted by the tip before batching, then the merchant loses the tip.

Another option for merchants is to add suggested tip percentages. We used to see merchants adding 3 suggestions, 15%, 20%, or 25%.  Lately, we see merchants increasing tips by suggestion to 20%, 22%, and 25%.  People generally pick the middle amount.  The receipt calculates the dollar amount of the tip for each of the percentages and prints it on the receipt to make it easy and fast for customers to decide on a tip amount.

Many merchants are choosing cash discounting, also called zero-cost processing.  This program allows merchants to add up to a 4% custom fee on top of transactions to cover the cost of credit card processing.  In this instance, merchants have a choice of whether to charge the custom fee on the transaction amount before the tip or on the total after the tip.

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