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Tipping 101: How to navigate tip screens like a pro

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Whether you’re at Starbucks or the car wash, so many transactions now involve a tip screen. What’s a tip screen? It’s the screen that pops up at digital registers that prompts you to add a tip or service gratuity. But with so many different services and expectations, how do you know when to tip and how much is appropriate? Here’s how to navigate tip screens like a pro.

Understanding the service industry

In many service industries, such as restaurants, salons, and delivery services, many workers rely on tips for a portion of their income. In some industries, giving a tip can show appreciation for good service, but it might also help support service workers financially.

How to tip appropriately

  1. Research ahead: Before using a service, do some research on what is considered an appropriate tip for that industry. You can ask friends or family members who have experience in that field, or do a quick online search. A general rule of thumb is 15-20% of the retail service price. 

  2. Consider the service provided: The amount you tip might reflect the service provided. For example, if your hairdresser spends extra time and effort on your hair, you might tip a bit more than the standard amount.

  3. Check for included gratuity: Some - but not all - businesses include gratuity in the total cost of service. Always check your receipt or ask upfront before paying to avoid over- or under-tipping. 

  4. Tip according to quality: If you receive exceptional service, you might consider leaving a larger tip as a way to show your appreciation and encourage that level of service in the future.

How to handle electronic tip screens

  1. Take a moment to think: Sometimes, the tip screen is the first screen to pop up, even before the balance screen. If you don’t want to feel pressure to tip or you’re not sure what to tip, it’s OK to pause and consider if the situation warrants a tip.

  2. Tip based on total cost: Some screens suggest a tip based on a percentage of the total amount owed. Other tip screens suggest preset amounts. It’s up to you, but tipping based on the total cost is often more accurate and consistent with what you’d normally tip. 

  3. Leave cash tips when possible: If you have cash on hand, consider leaving a cash tip instead of adding it to your card. This ensures that the full amount goes directly to the worker without any processing fees, and it can keep your credit card charges lower. 

Frequently asked questions: Tip screens

Q: Are tips necessary for all services?

A: Tipping is generally expected in industries such as food service, personal care (hairdressers, nail technicians), and delivery services. However, it is not mandatory for all services.

Q: Is there a minimum amount I should tip?

A: There is no set minimum for tipping, but the standard amount is typically 15-20% of the total cost.

Q: Can I adjust my tip after finalizing the transaction?

A: Some services may allow you to adjust your tip after the initial transaction, but not all. It's best to double-check before finalizing the payment.

Q: Does tipping etiquette differ when I'm traveling abroad?

A: Yes, tipping practices vary by country and culture. It's important to research tipping customs in the region you're visiting. In some countries, tipping is not customary and may even be considered confusing or offensive.

Q: How should I handle situations where a service charge is added by default?

A: Service charge and gratuity are usually two different things, but the terms are sometimes used interchangeably. If a service charge is already included, ask your service provider if it covers gratuity.

Q: Are there any services where tipping is not recommended?

A: Tipping is usually associated with service industries, although not always. Some companies prohibit their workers from accepting tips, so it’s good practice to check before offering a tip. For professional roles, such as doctors, lawyers, accountants, etc., tipping is not standard practice and is typically not expected.

Tipping can be a financial necessity for many service providers, and tip screens are making it a more common part of the purchasing process than ever. By taking your time during the payment process and making your selections carefully, you can navigate tip screens like a pro. 

Want more smart money tips and tricks? Bookmark the Greenlight Learning Center for a wealth of fresh information and guidance on family and finance. 


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