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.
Leave a Reply
You must be logged in to post a comment.