
Photo: Getty Images | PrathanChorruangsak
Customers may not be comfortable with payment solutions automatically prompting them to leave a default tip of 20 percent, 30 percent or more when they pay at restaurants and bars after interacting with a server. Now as payment solutions with built-in tip prompts continue to proliferate, they are showing up in new retail verticals and even at self-checkout kiosks.
“Emotional blackmail” is how a traveler visiting a gift shop at Newark Liberty International Airport described how he felt when he was prompted to include a 10 percent or 20 percent tip on a single $6 bottle of water, according to a Business Insider article (quoting original reporting by The Wall Street Journal). Other customers in the article encountered prompts to tip at cafes and even the self-service beer fridges at sports stadiums. Some shared concerns that they were unsure where the tip money was going for transactions in which they did not interact with a staff person.
Customers became more gracious with tipping early in the novel coronavirus pandemic partly because of the health risks associated with public-facing jobs. The pandemic also led more businesses to implement digital payment solutions to speed transactions and minimize customer contact. By 2022 customers felt forced to add a tip before paying at several major foodservice retailers. Reports began appearing of customers feeling shamed into tipping.
Earlier this year, customers began complaining of “tip creeping” with an ever-expanding list of business verticals nudging customers to tip, a practice once reserved chiefly for sit-down restaurants.
Rachel Wolfe, who reported the original story in the Journal, told CBS News that customers feel more obligated to tip when prompted at a kiosk than they otherwise would. Ms. Wolfe also pointed to researcher concerns that some businesses are guilting customers into leaving big tips instead of raising employee wages.
BrainTrust

Lisa Goller
B2B Content Strategist

Bob Amster
Principal, Retail Technology Group

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