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How EMV Compliance Changes Tipping

July 21, 2017

The standard paper slip tipping method that most Americans are accustomed to does not need to change unless merchants want it to.

For years now, U.S. restaurant goers have experienced a fairly antiquated tipping process: give the server your card, wait for your receipt, then sign and add a tip, if you feel inclined. With the introduction of EMV payment technology and the 2015 liability shift, there were many concerns that restaurants would have to abandon the traditional payment and tipping process in favor of models that are more common in other EMV environments.

The thought was that EMV would dismantle the tipping process because the whole transaction has to happen at the table. In Europe, they typically bring the transaction to the table, and the server stands there and watches the entire payment and tipping process happen. That would be a slightly uncomfortable process in the U.S. As some restaurants made the transition towards EMV compliance before and after the 2015 EMV liability shift, reports of tipping issues emerged, “Paying with a chip card will require customers to either tell servers a tip amount before a transaction is authorized or ask customers to key in a tip themselves if an establishment has a tableside checkout terminal.” 

When EMV was first being implemented, many restaurants did not give users the option to provide tip adjustments. For restaurants that were used to processing tips based off of paper receipt information, this shift threatened their payment practices. In reality, the majority of these issues were due to incorrect payment system installation and programming and a lack of education on EMV. The standard paper slip tipping method that most Americans are accustomed to does not need to change unless merchants want it to. 

Read the full article on FSR Magazine’s Food Newsfeed: How EMV Compliance Changes Tipping

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