Can You Tip Waiters and Bartenders With Venmo?

There’s a certain paranoia that goes with tipping. Sure, it’s largely an irrational paranoia, but it’s not totally baseless. We’ve all heard of restaurants getting in trouble for withholding tips from their servers, and even though it almost never happens these days, it’s still reason enough to be wary.

And then there’s the practice of “pooling tips” which is totally fine, however, it does make you wonder why you’d pay your server a generous tip if it’s just going to be divided up equally in the end. At that point, you’re basically just supplementing the entire staff’s income, which, kinda seems like the restaurant’s job.

The point is, if you’re going to voluntarily pay extra money for your meal or drinks, it’s a gift to the person who waited on you. Like any gift, you want to make sure that it’s going to the right place, that’s all. And one method that people have come up with for circumventing this issue is to ask their waiters if they have Venmo (or some equivalent). That way, they can wire them their tip directly and not have to worry about it going into a manager’s pocket or a communal tip coffer. The question is… is Venmoing tips allowed?

Short answer: Yes. But, servers AND restaurants kinda hate it. If you’re going to do this, it’s for your own peace of mind as a customer. Waiters would almost 100% of the time prefer that you give them cash.

Legally speaking, however, you’re only obligated to pay for your meal/drinks. Anything beyond the number on the bill is up to you. So, theoretically, you could use online banking apps to pay your server directly. Even though it complicates the whole process. There’s also a good chance that they might flat out deny online payment, which is their right.

If you are going to try this, here are a few points of etiquette to keep in mind.

1. Don’t pull this move in a crowded bar or busy restaurant. If you have to yell over a loud bar full of people HEY DO YOU HAVE VENMO!? then just tip like a normal person on your receipt. Don’t make everyone wait just because you wanted to get all digital with your tipping.
2. Take no for an answer. This is a good rule to live by regardless of the context. But, especially when it comes to tipping via Venmo, know when to give in. If they say that they don’t accept private online tips, don’t push them on it. You’ll only cause a scene.
3. Servers have to claim tips on their taxes. And while Venmo is pretty easy for them to keep track of, it does put them at risk for committing tax fraud by accident. Tax law requires them to report their tips to their employer so by introducing this alternative method of payment, you're making their life harder. It’s just one more thing that they have to keep track of on their personal finances.

TLDR (too long didn’t read): Be smart out there. Be polite about it. Remember that for you, it’s totally legal. However, for them, it’s pretty annoying.

Thanks for reading. Enjoy your weekend.