The dark side of touch-screen tipping

The article titled 'The dark side of touch-screen tipping' discusses the shift from traditional cash tipping to digital tipping in the era of card payments. The author narrates an incident where she impulsively bought an olive oil bundt cake from a local café. The cake, priced at $60, was more than what she intended to pay. However, the real shock came when she tipped 20% on her purchase through the touch screen register, amounting to $18 for her coffee, pastry, and cake. She blamed herself for the impulsive purchase but also criticized the touch screen system.

With the rise of card payments in the US, the tipping culture has also evolved. While tip jars are still common at local takeaway spots, digital gratuities have become more prevalent. Point-of-sale (POS) systems often prompt customers to enter a tip before completing a purchase. This puts customers in a position where they have to consciously decline, often under the scrutiny of a worker. Moreover, the suggested percentages are often higher than what many people would choose themselves. A survey conducted in June 2023 revealed that 32% of Americans were annoyed by pre-entered tip amounts on touch screen payment systems.

However, the annoyance is just the tip of the iceberg. The transition to digital tips is intended to increase participation in tipping and boost overall take-home pay. But there's a dark side to this technology. Consumers often feel pressured to part with money they don't have, and service workers find their wages stagnating in a culture saturated by tips. The touch screen POS systems are increasingly prevalent at small businesses, including food service establishments. The Covid-19 pandemic acted as a catalyst for more employers to adopt touch screen systems due to their mobility, ease of use, and options for contact-free payment.