One problem that gift cards present is that they aren’t as tip-friendly as credit cards, especially at restaurants. If you are paying with a credit card, here’s how a typical transaction works:
- The server gives you a bill
- You give the server a credit card
- They authorize your card for the bill amount
- They bring you a sales slip
- You sign the slip, and add in a tip
- You get up and leave.
- The server takes your slip to their POS and runs your card for the amount of your meal plus tip.
Most people have been through this exact process many, many times. An issue when paying with a gift card is that this process breaks down around step five. When using a gift card, even if the value of the card exceeds your bill, there typically isn’t an opportunity to sign for a tip and walk away. So what’s the best way to leave a tip if you are using a gift card? You have a few options…
Pay with cash — You can always pay the initial bill with a gift card, and then leave a cash tip.
Pay with a credit card — A little known trick that almost all restaurants will allow is to hand your credit card to the server and ask them to “charge you one penny”. The server will take your card, charge it a penny (or sometimes one dollar), and then then bring you a slip that includes the nominal charge, plus a tip line. Add a tip and walk away.
Ultimately what is needed is a better gift card tipping process, where once you identify to the server that you are going to pay with a gift card, you are allowed to specify a tip before the card is debited. We’re working hand in hand with restaurants to help them refine their handling of gift cards, and are creating systems that will allow you to tip using card funds. However, if you find yourself in a bind where you can’t use a gift card for a tip, don’t be shy about asking the business to run your card for a nominal amount, especially if you don’t have cash!
