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Passing credit card fee on to customer

We have been doing it for years. Only a couple people have questioned it. In Nevada it is legal to do this- we post a small notice of the fee charge (3%) on the register. That makes it legal, but I think most other states have different rules?
 
In my opinion prices should be set so that you are already passing along all fees and costs to customers. Just assume 3% of your pizzas selling cost is going to cc fees and price accordingly, just as you do with pricing in labor and rent and electric etc…
 
sounds good but prices are going up so fast it would be an ongoing menu charge. We mainly do it to pay for our credit card machine fees and to not help finance peoples trips to England 🙂
 
agreed…I personally am not a fan of all the additional charges (other than delivery charge) I see as a consumer. I like to operate as frictionless as possible and think that people appreciate it
 
Yeah I thought someone might zing me on this one 😮 We do charge for delivery however I do think there can be a differentiation between something like delivery and adding a %surcharge to all orders. The two main things are delivery is an added service, kind of like how I can go to costco and buy a couch and take it home with no extra charge or I can pay them $100 to bring it to me instead, and also its something most people expect as a normal charge. Speaking strictly as a consumer I see a decent amount of places kind of tacking there business costs on as extraneous costs on top of what there menu costs are and I always just think those things should mostly be baked in. An example of this is the wide array of fast food joints who are now asking for tips for there employees to use it to supplant there normal wages. Like when I goto subway and either order online or in person and the machine is prompting me for a tip its just a feel bad moment where if I don’t tip im a dick but at the same time subway should just pay there employees without requiring me as a customer to bolster them. I also want to add that if people are doing it and it works well then just definitely keep doing it. I know there are gas stations around here that sell gas cheaper if you pay cash so its certainly a thing that happens.
 
It would be nice if the customer paid the processing fee, I paid alot in CC fees last month and I get a great rate.
Its a convenience for the customer more so than it is for the merchant.

Overall though the average customer doesn’t even realize the cost associated with cc processing. The best course of action is to build it into your pricing and keep as straight forward as possible like @famousperry said.
 
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since you brought it up I guess I am guilty of the prompt to add a tip when a customer picks up or orders in house just like they would if they ordered online or on my app. I think if everyone had the technology (we use Foodtec’s touchpad screens with EMV CC machines) they would see the benefit immediately. We started using these a few years ago and have only had 2 complaints and we make it clear that there is no expectation. Covid really helped the public perception of the restaurant employee when it came to tipping and I think we should take advantage of it to supplement the wages we pay. My counter help walks out with at least $20 in cash in the jar pictured and a range of $50-100 each night in addition to minimum wage of $13/hr so they are extremely happy employees with this addition. The vast majority of these tips are pre-tipped when they order online
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Is your establishment a dine in restaurant or are you mostly take out and delivery. For some reason I don’t mind tipping places that are traditionally dine in but get irked being asked to tip at fast food joints. You said nearly 100% of online orders include a tip, how about the in person CC swipes? Do you just divide the tips evenly with all inside kitchen staff at end of night?
 
cash in jar yes they grab…credit card tips are all paid on the check. We have a spreadsheet that lists the amount by employee/day/shift so it is transparent. We also pay out driver tips on their weekly paycheck. We made the switch years ago with tips on check and were pleasantly surprised that we got little to no blowback. Actually, it helped employees realize the amount of money they were making and helped them not squander it.
 
we are now primarily delco but have approx 20 seats that are served on a fast casual basis (no servers, etc). What I said is that the vast majority of the tips are from pre-tipped online orders, but they do get the remaining from swiped orders also. My goal is to divide the pre-tipped orders amongst the staff but I am still waiting to hear from my accountant with the rules for tip sharing, etc.
 
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I have been collecting credit/debit tips for a few years now. The workers split tips evenly at the end of anyone’s shift. I have the manager do a pay out so my drawer balances daily. I do my own payroll and collect/pay taxes on those tips.
 
I just finished payroll and calculated the average $tips/hour worked. It works out to almost exactly $2/hr.
 
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