Tipping: Paper or plastic?

youdontkillmoney · ‎05-24-2014

When you tip do you tip paper (actual cash) or plastic (credit cards)?

I try to use cash as much as possible because I think the person being tipped prefers it this way because s/he can choose to use it right away, and though against IRS rules, pocket it and under report their income, and keeps more if it this way since using a credit card to tip means they get it through their paycheck which they are taxed on when they do annual taxes.

If I do use credit card, I give a little more to cover any taxes that might ne taken off in their paycheck.

Same thing in a casino, when I tip, I use cash for the same reasons, one time after getting my rum and Coke drink, I asked the cocktail waitress, do you want this $5 tip (flashing a five) or my blackjack bet ($100 on the table), she said, I'll take the bet. I played it she won, and instead of giving her plastic (chip) which the casino can track when she turns it in, I gave her a $100 bill instead she can do with whatever she wants. After that she kept on taking care of me in that another drink magically appeared out of nowhere every so often.

PandiferBear · ‎05-24-2014

@youdontkillmoney wrote:
When you tip do you tip paper (actual cash) or plastic (credit cards)?

I try to use cash as much as possible because I think the person being tipped prefers it this way because s/he can choose to use it right away, and though against IRS rules, pocket it and under report their income, and keeps more if it this way since using a credit card to tip means they get it through their paycheck which they are taxed on when they do annual taxes.

If I do use credit card, I give a little more to cover any taxes that might ne taken off in their paycheck.

Same thing in a casino, when I tip, I use cash for the same reasons, one time after getting my rum and Coke drink, I asked the cocktail waitress, do you want this $5 tip (flashing a five) or my blackjack bet ($100 on the table), she said, I'll take the bet. I played it she won, and instead of giving her plastic (chip) which the casino can track when she turns it in, I gave her a $100 bill instead she can do with whatever she wants. After that she kept on taking care of me in that another drink magically appeared out of nowhere every so often.

I have heard that cash is appreciated. If I have cash (but honestly, there is a blue moon if I do), I absolutely tip cash. However, an odd thing I have noticed is that if I get a pizza for delivery and pay online with my credit card and then add on a tip to the CC at the door -- I never see the charge for that. Huh? I just get charged for the online purchase. I figure maybe they are compensating at the restaurant to avoid CC fees (or something?), but who knows? So lately if I know I am going to order one, I try to get cash back at some point in my day.

Exonumist · ‎05-24-2014

Having worked service jobs where tips where a large part of my income, cash is king. Though whenever asked the answer is always whatever works best for the person tipping. Now that I own a business that also involves tips, cash is even better. I don't have to pay processing fees.

takeshi74 · ‎05-24-2014

Plastic. I generally don't carry cash and I'm not going out of my way for someone else's attempt to avoid paying the IRS.

TwistedAngel · ‎05-25-2014

Cash every time. #1 certain businesses take transaction fees out of the tips when you put those on plastic. #2 I am never 100 percent certain that my waiter/waitress gets the tip if I put it on a card and #3 my brother had an issue with an unscrupulous waitress adding a 1 in front of her tip amount (she was found out and fired later, apparently she did this on a daily basis). I always write CASH in huge letters on the tip line and put a squiggly line in the space before the total amount so nothing can be added to it.

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youdontkillmoney · ‎05-25-2014

@TwistedAngel wrote:
Cash every time. #1 certain businesses take transaction fees out of the tips when you put those on plastic. #2 I am never 100 percent certain that my waiter/waitress gets the tip if I put it on a card and #3 my brother had an issue with an unscrupulous waitress adding a 1 in front of her tip amount (she was found out and fired later, apparently she did this on a daily basis). I always write CASH in huge letters on the tip line and put a squiggly line in the space before the total amount so nothing can be added to it.

^^^^^^^^

That's another good reason to use cash when tipping, some waiters/waitresses add extra tip, this happened to me on two occassions but I vet my bills and I catch them. I cann the cc rep and they reverse it (Amex always comes through for me!)

Exonumist · ‎05-25-2014

@takeshi74 wrote:
Plastic. I generally don't carry cash and I'm not going out of my way for someone else's attempt to avoid paying the IRS.

That's not the only reason why cash is preferred. My first job was delivering pizza and some of the "managers" thought that it was ok to steal money from drivers by reassigning the receipts to their own name in the computer. Granted it never happened to me because I pulled all of my tips before cashing out, but some of the newer drivers especially would get screwed on a regular basis. Other "managers" would try to force you to tip them out. If that receipt with the tip on it somehow gets "lost", guess what? Whoever you tipped probably isn't going to get it. Another location then the one I worked at had all the "managers" ganged up on drivers and they implemented a policy of any carryout tips were theirs. Any tip over $5 they took HALF of. So now that $10 tip that you gave your driver for driving through flooded roads and getting soaked out in the rain not only turned in to $5, but he also pays taxes on $10! The drivers didn't know the difference they just thought that's how it worked. You can bet any time something was even tried I was on the phone either to my district manager or the owners. They didn't know there was any kind of problem until it was brought to their attention. Not all of the managers were like this, in fact most weren't. Still you really never know. If you give someone cash there is a higher chance that it goes to the right person and not some greedy pig.

To avoid having anything added to a credit card tip, make sure you write a total. You can also put the tip number in between two dashes. That way nobody can just add a number. Make sure they're long enough that it can't be turned into a number. I never saw it happen, but I have had it happen to me. That's why credit cards are great. Call the bank and dispute the charge if the business won't take care of it.

blondy250 · ‎05-25-2014

A lot of good reasons in this thread both for and against. I just have a problem with people not reporting there whole income, which 99.99% of people who recieve cash tips don't do.

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youdontkillmoney · ‎05-25-2014

@blondy250 wrote:
A lot of good reasons in this thread both for and against. I just have a problem with people not reporting there whole income, which 99.99% of people who recieve cash tips don't do.

Nice credit stats!

cobbson · ‎05-27-2014

@youdontkillmoney wrote:
@blondy250 wrote:
A lot of good reasons in this thread both for and against. I just have a problem with people not reporting there whole income, which 99.99% of people who recieve cash tips don't do.
Nice credit stats!

For sure! Take notice of that big diamond.