4 Tipping Errors That Can Cost You Hundreds Each Year
Tipping used to be pretty straightforward — you get good service at dinner or from your food delivery driver and you tip 15% to 20%. But now, everyone wants a tip.
Tipping expectations have increased, and there are sneaky things to watch out for on the check that can cost you more than you should pay. While tipping is something service industry workers rely on, a few common mistakes can rack up quickly.
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Here are four errors to avoid so you can tip confidently without paying more than you need to.
Missing the Automatic Gratuity
The rule for automatic gratuity added to a bill was typically reserved for large parties of six or more. But now, a table of two or three diners can have an added automatic gratuity charge.
According to WebstaurantStore, it’s becoming more standard, so make sure to check your bill before tipping on top of what you’ve already been charged or ask your server if a tip was already included.
Letting Payment Screens Decide Your Tip
When it's time to tip and the tablet is flipped around for you to add gratuity, suggestions can range from 20% to 30%, regardless of the type of service. Those preset options are designed for convenience, but they don't have to determine how much you leave.
Choose an amount that reflects the service you received rather than feeling obligated by the suggested options. There is usually a place to add a custom tip that lets you enter the amount you're comfortable giving.
Feeling Guilty About Every Tip Prompt
Tipping fatigue is real. Whether you're buying a T-shirt at a concert or getting counter service when buying a pastry, more industries are asking for tips and social pressure can make it difficult to press "No Tip" even in situations where tipping has never been customary.
It's perfectly OK to skip tipping in every situation, simply because a screen asks. One way around it is to pay in cash when it's convenient, avoiding digital screens altogether.
Tipping on the Total Bill Instead of the Pre-Tax
Many people calculate the tip based on the final bill, including sales tax. However, the service you received is provided on the pre-tax cost of your meal, not the tax itself. The difference when tipping on the total bill versus the pre-tax amount is usually small but it can add up, especially if you eat out often. Tipping doesn't have to be complicated. As the tipping culture continues to evolve, many Americans are becoming more intentional about when, where and how much they tip — especially in situations where little or no service is provided. By checking your bill before paying, knowing when gratuity is already included and making your own tipping decisions rather than relying on suggested amounts, you can avoid paying more than you intended while still rewarding good service.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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