Tipping on the card terminal: how to set it up the right way

Short answer: Let clients choose a tip on the terminal before they tap: show three suggested amounts, a custom button and a no-tip button. The tip travels with the payment, so it's accurate, and when the terminal is connected to your POS the tip goes straight to the right person's pay.

Why put the tip on the terminal?

• No handwriting: no more mixed-up tip slips or misread numbers.
• One tap: clients don't sign again or wait for a tip adjustment.
• Right person: the tip is attached to the ticket and staff member at payment time.

Which amounts should you suggest?

There's no single right answer. A common setup:

• Three percentage buttons, such as 15%, 18% and 20%.
• A "Custom" button for any amount.
• A clear "No tip" button so nobody feels pressured.

For low-priced services, some shops use dollar amounts ($3, $5, $8) instead of percentages.

What should the tip be based on?

Decide once and stay consistent: before discounts, after discounts, or on the total with tax. Many shops tip on the service price before discounts and tax, so staff tips don't shrink when the shop runs a promotion.

When several staff work on one ticket

If one person does hands and another does feet, how is the tip split? A common rule is to split by each person's share of the service price. A good system applies that rule automatically and lets the owner adjust special cases.

Tips and payroll

• Record tips per staff member for accurate payroll and tax reporting.
• Rules about tips, passing card fees on tips, and tip sharing vary by state. Check with your accountant.

In Kashela, clients pick the tip on the terminal, and the tip flows back to the ticket and into each staff member's pay report. Read more about commission payroll.