Independent Tipping via Card Payment: Here's Your Guide

Shedding the Pressure: Personal Tip Decisions in Card Payments

Using cashless payment methods for tips: Guidelines for effortless tipping

From the bakery to the barber, when paying by card, you might encounter a barrage of tipping options on the terminal. It may feel overwhelming, especially for first-timers; after all, voluntary tipping is the norm in Germany rather than a request from the vendor. But what if these options blur the line between what you'd like to tip and what others expect you to tip? We delve into the nitty-gritty of this situation and provide you with expert insights.

The Impact of Tipping Options On Consumers

Whether viewed as a convenience or an unwelcome pressure, the presence of tipping options at the card terminal can instigate a gamut of reactions among consumers, says behavioral economist Prof. Dominik Enste from the Institute of the German Economy. Some individuals might appreciate the ease of not having to calculate a tip, while others might resist this subtle influence and refuse to tip, potentially shunning the establishment in the future.

From a provider's perspective, however, offering tipping options on the card terminal makes good business sense, according to economist Prof. Julia Pitters. It serves as a helpful reminder for consumers who often forget to tip when paying by card. "It gives the impression that this practice is customary," explains Pitters. And who doesn't want to conform to common expectations and avoid feeling like an outlier?

The Tipping Trend: More or Less?

The use of nudging, which encourages diners to tip, boosts the total tips received, states Dominik Enste. But the amount each consumer tips depends on their usual habits, as well as the options available on the payment terminal. "People typically select the middle option," says Enste, because we tend to shy away from extremes.

Many business owners and entrepreneurs are astute to this psychological trick, informs Julia Pitters. In Germany, tips typically fall between 5 and 10 percent. However, if the lowest option starts at 10 percent, "a completely different anchor is established." Because of the middle position effect, customers rarely choose the lowest category, often resulting in tips that exceed 10 percent.

The Power of Defaults and Choices

This psychological phenomenon, known as "choice architecture," explains why it's difficult for people to choose "no tip" even though it's their preferred option. They feel compelled to pick one of the presented options, even if none of them truly suit their preferences.

Due to our innate desire to avoid being perceived as tight-fisted or even miserly, says Pitters. However, when paying at a card terminal, selecting no tip might bring unwanted attention from both the staff and onlookers.

Escaping the Tipping Trap

"If we don't pause to think, we fall easily into these traps," says Pitters. So, it helps to pre-plan your tip strategy before you swipe your card. Put simply, consider how much you'd like to tip and stick to your decision, so you won't be thrown off by the sudden tipping options.

Sharing experiences with others can assist in adjusting your internal compass, say Pitters. You might discover that others have similar feelings about tipping and choose to ditch the default options or select no tip.

Customer advocate Sonja Guettat advises avoiding hasty decisions due to pressure from long lines at the checkout. Instead, ask if you can manually enter the tip amount if it's not listed.

The Legality of Tip Suggestions

While it's not unlawful for vendors to offer tip options, there's no legal entitlement to a tip. As such, it's essential that customers are always provided the option to avoid tipping, affirms Guettat.