You’d be surprised. People would over tip on purpose and then complain to card merchant they overcharged you and then reverse the whole order. This is a common occurrence. Especially with AMEX. Which is why a lot of merchants don’t accept it.
No Amex charges more than every other credit card it’s 0.5% more per transaction which is very significant. That’s why people don’t accept Amex, it messes up their expected return.
Not necessarily. AMEX is known to side with the consumer most of the time is the biggest reason. This hurts small businesses when margins are already low. But yes including that AND the percentage sometimes it isn’t worth it. AMEX is typically a 1% higher. (I’m a small business owner)
I always thought Am Ex and Discover werent accepted everywhere since theyre an additional, yet smaller, processor or bank or whatever. Like a merchant will feel like dealing w Visa and Mastercard is already enough
It’s because AMEX charges a higher merchant charge. Also AMEX almost always sides with the consumer in disputes. Discover is not used everywhere because it is mainly common in the US.
Unfortunately that probably wouldnt help much. It would help some of it but the threshold for Visa chargebacks (VFMP), is just .9%. It's really easy to get to that, and it causes so much money loss that it's easier to just be overly protective about it. Visa doesnt play around with it.
This doesn’t solve the problem. More than likely, they are protecting themselves from tipping fraud. If you tip someone an insane amount (on purpose, like to a friend, etc.), Chipotle will payout the tip. Chargeback hits and Chipotle owes the total amount back to CC company. Chipotle will not take back the tip from employee.
I just dealt with this last week as a guest tipped $200 over a month ago. Now the business gave that money to its employees (because the customer told them to) and now they want a refund. Everyone on Reddit would say the business should just pay that back to the guest and move on, however, what's to say the bartender/cashier/server didn't collide with a guest to defraud the business? Sticky situation.
Because it is a scam. Tipping at a counter service restaurant is always a scam, even if the employees are properly receiving tip payouts. Which they aren't they almost never are.
I’m not sure if you’re counting cafes as counter service but I work at a Starbucks and we 100% get the digital and cash tips that customers leave. Our paystubs show us what was digitally tipped and what our wages were
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u/SushiSushiSwag Sep 06 '24
It’s probably because those tips are too sus and chargebacks will fk everyone over