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Tipping Software Drives Increase, Dallas Customers React

Tipping Software Drives Increase, Dallas Customers React
A woman has customer pay on an iPad | Image by Shutterstock

Tipping software at businesses is more common than ever, fueling the generation of billions of dollars in the United States each year. However, some Dallas customers think the practice has gone too far in some cases.

ShopKeep, Square, and Revel, common point-of-service software, make tipping effortless. Square can be found in more than 64 million businesses worldwide as of 2020, according to The Ascent.

Usually, it works by placing an order, and then the employee flips a screen, giving the customer the option to choose between a 15% to 25% tip or not tipping at all.

But some social media users have decried the process, saying they have been given weird looks when not tipping at a coffee shop. One user even claimed an ultrasound facility asked for a tip using the software.

This is sometimes known as “guilt tipping,” coercing consumers to tip out of guilt, confusion, awkwardness, or a sense of obligation.

ShopKeep, a cloud-based point-of-sale provider, says about 23% of its merchants have enabled a tip screen for their businesses. The company says that 12% of its more traditional retailers — including clothing boutiques, flower shops, liquor stores, and beauty salons — have enabled the functionality. An article from Today said one business in San Francisco received a 30% increase in tips due to using tipping software.

The Dallas Express spoke to some people who were doing shopping or on their way to work in the Bishop Arts District.

“I think it’s bulls**t,” Matthew Weiss, a resident of downtown Dallas, said. “Only waiters should be tipped. How much service are they really giving you?”

Uptown resident Kalin Larousse agreed.

“I went to a vape shop where they were using it,” Larousse said, who explained he does not mind tipping but also thinks some businesses should not be asking for tips, especially in industries that do not traditionally expect customers to tip.

Americans are expected to tip far more than any other country. Studies indicate that tippers are more motivated by societal pressure than a sense of rewarding employees for excellent service. And point-of-sale software makes the decision to tip far more public than using either a tip jar or writing it down on a receipt.

Other people The Dallas Express talked to said that tipping was important, even in non-food service businesses, because of inflation and perceived wage stagnation.

Miranda Evans said tipping is a way for her as a customer to make pay fairer for the employees.

“I never mind giving a little bit because it’s a little bit more than what their employers pay,” Evans said. “I kind of take that into account.”

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