Tipping culture is out of control

As the negative sentiment takes hold, some businesses are opting out of digital touch-screen payment systems with predetermined options

Jul 6, 2023

Two-thirds of Americans have a negative view about tipping, according to a recent report by Bankrate, particularly when it comes to contactless and digital payment prompts with predetermined options that can range between 15% and 35% for each transaction - and 30% said “tipping culture has gotten out of control.”

Key takeaways

  • Many feel the pressure to tip has increased over the last year, as the technology is making it harder to say no, or tip a small amount;
  • As a negative sentiment takes hold, more business owners scale back on suggested tip amounts or eliminate tip prompts entirely to appease customers;
  • Now diners leave an average of 25% when they dine in, but only about a third tip on carry out, and when they do, the tips average 5% to 10%.

Get the full story at CNBC

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