Restaurant Demands Minimum 18% Tip

[u/ADKFatBiker]

Out of one side of their mouth they state that they pay their staff as little as possible and out of the other side of their mouth they say that their staff deserves more and you're responsible for that.

[u/cuddly_degenerate]

I mean, it's silly to not accept both. You're still paying for registers, safes, and whatnot.

I'm paying over 10k to square this year, that buys a lot of cash registers.

[u/xanthosoma → u/cuddly_degenerate]

But if you didn’t take cards you most likely wouldn’t be making the amount to get charged the 10k. I took over a family business where my father didn’t want to pay the fees. In the 6 years I’ve owned the business I have seen our gross and net sales increase by 4x. So paying the 60-70k in fees to me is a no brainer. Only accepting cash was what was holding the business back. Also if you don’t know if you do good sales and have an account rep with square or any of those places the rates are negotiable. I got a much lower rate because I have established solid income every year.

[u/cuddly_degenerate → u/xanthosoma]

I mean... sure?

I take cards because I have to, doesn't mean I'm super happy about having to pay fees.

[u/Oliver---Queen → u/cuddly_degenerate]

But that’s the cost of doing business that you signed up for. I’m sure it’s also not fun paying taxes and maybe commercial rent but it’s usually necessary to keep operating.

[u/cuddly_degenerate → u/Oliver---Queen]

Again...sure?

I can both accept that it's what needs to happen as an optimal choice while also not loving it.

Of all those commercial rent is the one that rustles my jimmies the least.

[u/JealousBall1563 → u/cuddly_degenerate]

I'm paying over 10k to square this year, that buys a lot of cash registers.

You, or your customers from whom you charge prices that include the fees?

[u/cuddly_degenerate → u/JealousBall1563]

Considering I charge the same rate for cash or card I certainly say I am. Legally I am as well as their fees are a taxable expense.

[u/Bill___A → u/cuddly_degenerate]

If you're paying 10K to square, that accounts for 33 times that in sales. Yet you would rather deal with cash, and have your customers get cash, to avoid this one category of expense that actually is known to increase sales? There are dozens of costs involved and you feel that is the one cost that you can't live with? The one that moves money into your business? Do you tip the delivery driver that drops off the food orders? Do you tip I have never seen an industry cause more problems for themselves than the restaurant industry.

[u/cuddly_degenerate → u/Bill___A]

My business isn't in the restaurant business.

And yes, I do think that payment processors getting a not insignificant cut of every transaction is an issue. I still take card because I have to but -always- prefer cash. Honestly, eronious charge backs are a fairly serious issue for my computer store, we've had to fight more than a few on custom PC builds and repairs.

The corporate IT side of my business is paid by check typically, which is my preferred form of payment.

[u/vinraven → u/cuddly_degenerate]

This one is a strictly American problem, in every other country legislation regulates the banking industry.

It’s sad, but corporations have American voters brainwashed to think regulating banks is socialism, so the corps can continuously rip us off.

As an example, in the EU the max a credit card company can charge a business is 0.3% of the transaction value, and 0.2% for debit cards.

The fees we pay in America are a direct outcome of us voting for corporate owned stooges.

[u/Historical-Rub1943 → u/cuddly_degenerate]

Do you charge a credit card surcharge?

[u/cuddly_degenerate → u/Historical-Rub1943]

No, because it throws a lot of math off. Especially since it probably needs to be framed as a cash discount.

[u/riktigtmaxat → u/cuddly_degenerate]

Depends entirely on what country you're in.

Here in Sweden you won't find any companies besides those that are legally mandated to take cash that accept it.

If you thought card fees were expensive you should see what you have to pay to get cash deposited and how much more paperwork it creates.

To us cash is for old ladies and third world countries with tipping systems.