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This is a misdirection. I hear people discuss this issue all the time and the focus, like TFA, is focused on compensation and ‘labor demanding too much from co
by ldayley 3y ago
This is a misdirection.
I hear people discuss this issue all the time and the focus, like TFA, is focused on compensation and ‘labor demanding too much from consumers’. But consider that processing fees (at least in the US) are generally a small fixed fee of some cents + a percentage of the transaction.
Including tips in the default POS checkout flow has more to do with card transaction fees determined in large part by the transaction size, which creates a strong incentive to boost that transaction total in any way possible.
Similarly, do you ever wonder why everyone wants to you donate to a charitable cause at the grocery store all of the sudden as part of a similar flow in industries that don’t have a tradition of tipping? I suspect that card processors have discovered guilt is more effective than up-sales at increasing transaction size and has been a major driver of increased revenues over the past years.
Edit to add: transaction fee clarity
- kyleee 3y agothanks for the charity bit; handn't thought of that and it steels my resolve to continue to decline such random donation requests.