topic Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash. in Community Chat

Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

panda1234 — Sun, 04 Nov 2018 15:10:52 GMT

Has anyone had this happen? I was told their machine was not setup to do this. I think they don't want to pay tax on their tips.

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

Dar321 — Sun, 04 Nov 2018 15:13:55 GMT

Yes, that is why. Just bring cash, or ask before you tip what the total is and tell them to ring out however much you want to tip as a total sale.

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

lolakimono — Sun, 04 Nov 2018 15:14:00 GMT

Mine is the same way @panda1234.

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

missy1 — Sun, 04 Nov 2018 15:14:24 GMT

It might be true with ttheir set-up. I always tip with cash.

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

Mj12 — Sun, 04 Nov 2018 15:15:34 GMT

Hi @panda1234 yes - a nail salon I used to go to wouldn’t allow the tip to be added to the total charged. They did have a big sign in front about it.

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

panda1234 — Sun, 04 Nov 2018 15:16:53 GMT

@Dar321 wrote:
Yes, that is why. Just bring cash, or ask before you tip what the total is and tell them to ring out however much you want to tip as a total sale.

@Dar321 I like the idea of ringing out the sale with the tip.

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

panda1234 — Sun, 04 Nov 2018 15:18:18 GMT

@lolakimono wrote:
Mine is the same way @panda1234.

@lolakimono Is that legal?

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

millieshops — Sun, 04 Nov 2018 15:18:29 GMT

@panda1234I haven't been able to put salon tips on my charge for years. It's the person receiving the tip, not the salon that owes the taxes. So my guess is that if the salon collected tips, they'd have to assume every employeee received the same percentage tip from every customer to figure out what actually goes to the worker.

Not so sure my explanation is as clear as a programmer might make it, but I'm close to understanding what I mean. lol at myself!

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

Carolina925 — Sun, 04 Nov 2018 15:20:13 GMT

My salon used to have a machine that was not set up to process tips, not sure why. They switched to a different vendor and now they can do it. Any establishment that receives tips for their employees are required by law to report those tips. Even those who accept tips directly are supposed to report the amount to their employer. If they don't report them, the employer is required to guesstimate those tips. I'm a bookkeeper and stating this only to explain the law. According to the IRS, everything is supposed to be taxed as income, even bartering.

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

Patty Pooh — Sun, 04 Nov 2018 15:21:20 GMT

Hey, a tip is a tip. If you don't want it om my card - you might just be out of luck. Beggars can't be choosers.

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

panda1234 — Sun, 04 Nov 2018 15:22:58 GMT

@millieshops wrote:
@panda1234I haven't been able to put salon tips on my charge for years. It's the person receiving the tip, not the salon that owes the taxes. So my guess is that if the salon collected tips, they'd have to assume every employeee received the same percentage tip from every customer to figure out what actually goes to the worker.

Not so sure my explanation is as clear as a programmer might make it, but I'm close to understanding what I mean. lol at myself!

@millieshops Where I usually go, the person rings up the sale and whatever I put down for a tip she takes out of the drawer in cash. Who knows what is going on.

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

panda1234 — Sun, 04 Nov 2018 15:25:30 GMT

@Patty Pooh wrote:
Hey, a tip is a tip. If you don't want it om my card - you might just be out of luck. Beggars can't be choosers.

@Patty Pooh They might get a bigger tip if you were able to put it on your card.

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

Bri369 — Sun, 04 Nov 2018 15:29:30 GMT

They're not doing anything illegal by not accepting tips with a credit card.

It might be easier to manage straight sales with without subtracting tips. Employees might want their tips up front instead of waiting for the tips to be processed.

I just always make sure I have cash for tips now. It's just easier...

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

Sweetbay magnolia — Sun, 04 Nov 2018 15:30:02 GMT

True where I go. I give her cash. Probably makes accounting much easier for the salon, and then I would guess my stylist claims the minimum required (I mean, really, I tip very generously but I would wager some do not).

If I use a debit, my salon could include the tip. I don't use a debit anywhere.

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

MomCat — Sun, 04 Nov 2018 15:45:30 GMT

I always tip in cash wherever I go. It's probably just my imagination, but I'm a generous tipper, and I want to make sure the person serving me gets my tip in full.

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

BaileyBop — Sun, 04 Nov 2018 15:46:16 GMT

I believe a 1 to 3 percent of the sale goes to the credit card company. When you put the tip on the card the owner of the salon has to pay that fee. I personally never put tips on my CC for that reason. Who knows, maybe some business owners takes that percentage out of the tip.

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

sunshine45 — Sun, 04 Nov 2018 15:46:57 GMT

my nail salon is set up this way and has been for quite a while. they have a sign posted regarding tips. any other ones i have been in are usually set up this way. i was staying in a vegas hotel recently and they automatically added a tip onto your service unless you said otherwise.

i prefer to leave a tip in cash anyways......at the salon and at restaurants.

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

Carmie — Sun, 04 Nov 2018 15:56:03 GMT

When you pay with a credit card or a debit card for that matter, the merchant does not get the full amount of the transaction. A certain percentage is taken upfront by the CC company or bank. Usually it is a lesser fee for a debit card.

For example, say your purchase is $116, the merchant might get $107.62. If you add a tip, fees are subtracted for the tip too. Now, how easy is it to figure out how much the actually tip is?

Some places just eat the fee and let their employee have the full amount of the tip and write off the rest, but other places do not do that. They give the reduced actual amount minus the cc fee to the employee. If they have that program on their register it is easy, but if they don't, it would have to be manually figured out.

it's so much easier to just accept tips in cash and by doing so, your waitress or hair stylist gets the full amount you intended to give them.

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

suzyQ3 — Sun, 04 Nov 2018 15:58:36 GMT

@Patty Pooh wrote:
Hey, a tip is a tip. If you don't want it om my card - you might just be out of luck. Beggars can't be choosers.

@Patty Pooh, you'd punish your stylist for the salon policy?

Yes, it a common practice. My former salon preferred separate tips. My current one actually has a line on the receipt for a tip.

Re: Just went to a salon and they would not let me put the tip on my credit card, had to be cash.

wildcat fan — Sun, 04 Nov 2018 16:07:23 GMT

I've never been to a salon that wouldn't allow me to add a tip on the card if I'm paying with a card.

However, when we moved here I made appointments at a couple of salons and found out after the service had been provided that they don't take credit or debit cards. Fortunately they were near ATMs but I never went back. I don't carry that amount of cash nor do I carry a checkbook these days. I put it on my credit card and pay it off at the end of the month while earning points. If the salon wouldn't take a credit card for service and tip, I'd look for another salon due to the inconvenience.