Should tips for people that earn less than the poverty level be exempt from credit card transaction fees.?
If you were able to tip an employees at Wendy's or McDonalds that is making at or below the poverty level salary, should a credit card company be able to take a cut of that tip?
F2020-10-26T02:21:57Z
Favorite Answer
The whole culture of tipping should be ended. It just allows employers to pay low wages and expect someone else to pay the rest. When I do my weekly shop , I don’t add a 15% tip at the checkout , so why do I have to do it in a restaurant ?
That is IMPOSSIBLE. The card processors have no way on knowing what portion of the transaction is a tip, or if the person receiving the tips is above or below the poverty line. That said, employers that allow tips paid by cards are not supposed to be allowed to deduct card processing fees from the tips.
The credit card company does know which is the tip and which is the payment, the customer enters how much to add as a tip. People talking rubbish on here again.
I don't think it's technically possible for them not to take a cut. The credit card company doesn't know how much was what the restaurant charged and how much was the tip. They only know what the total was, so if they charge a fee at all, then it has to be for the total; the only way for the tip to be exempt would be if everything, including the cost of the food, was also exempt.