#DipJar Allows For High Tech Tipping

Many NYers pay for their morning coffee with a credit card and now they’ll be able to tip with their card too. A new device called DipJar allows customers to leave a tip by pre-selecting the amount that they want to give and then swiping their card.Unlike many credit card transactions, these tips are not yet subject to a processing fee, so the workers are able to equally split the tips given.

In 2011, over 30 percent of the debit card receipts were for under $10 according to PULSE ATM/debit network. But with the increase in payment with debit and credit cards, Reuters says that less people are tipping their extra change, and thus the workers are getting less tip money for extra cash.

NY coffee chain Oren’s Daily Roast has piloted DipJar and saw one woman charge 45 cents as a tip to her card. The product is currently piloted in six locations and is paying the debit and credit card fees that the restaurant would face. In the future, DipJar co-founder Ryder Kessler said DipJar hopes to ensure that with fees, the workers still receive at least 80 percent of the tips.

Reuters