POS & Payments

What is Tipping and Gratuities?

Also known as: tips, gratuity, tip prompt

Tipping, or gratuity, is an optional extra amount a customer adds to a payment to thank staff. In Australia tipping is not expected in the way it is elsewhere, but many cafés, restaurants and venues now offer a prompt on the payment terminal.

The terminal shows preset amounts or a custom field before the card is tapped. The tip is recorded with the sale, separate from the revenue, so the business can report on it and pay it out correctly.

Businesses use tip prompts to make it simple for customers who want to tip and to avoid staff handling cash. Reports show tips by shift or staff member, supporting fair distribution.

Tips can have tax and payroll implications, so confirm the treatment with your accountant, and keep the prompt optional and unobtrusive so it does not pressure customers.

See it in practice

Questions about Tipping and Gratuities? Talk to the RetailCare team.