Opinions on whether a tip option should be allowed on the debit visa machine? I'm considering removing it because staff is going into the till to cash in tips received.

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Hi D,

From my experience, my Baristas make more tips because the tip line is available. However, they are not allowed to take their tips out until the end of the shift with supervision or I'll just take it out for them. This has worked well for me so far. Good luck!

The cost of the transaction fees should be deducted from the tips when cashed out. 

Either give them their tips in a money bag weekly or monthly.

I am going to leave them the tips in envelopes at the end of the day. The staff seemed upset because they have to wait. Thanks for the feedback. Do any of you allow the staff to reconcile the cash at the end of the day?
I manage a shop in Seattle - if you have an amazing staff there should be no problem with letting your employees reconcile their tips. We do it - never a problem. Part of keeping exceptional employees is creating a happy, positive workplace.

Our staff closes out the cash, handles deposit bags and manage their cash tips. I say cash tips because we do not offer tipping on cc transaction slips. Tips are strictly cash.

Previously I have let the staff cash in tips and reconcile the cash at the end of the day. I did the deposits. When there are cash shortfalls or issues with cash I just get a puzzled look and no explanation. If you have multiple people pulling money out of the till how do you narrow down problems that may arise from time to time? I am not saying there is theft but maybe mistakes in what is taken out. If the cash balances out great, but if not then who is responsible?

Today's society is trained to use plastic. No serious business does not accept credit cards. IMO tips should be allowed to be added to credit/debit sales just the same as the sale is. Not allowing cc tips greatly reduces employee potential income. It's not like being a barista is a high paying job and most use tips for their daily living expenses while paychecks used for monthly major bills. Whether you trust your staff to properly reconcile cash and cc tips pulling cc tips from cash is up to you. IMO doesn't hurt the cash flow of a healthy business and promotes employee moral.

Who is responsible? The person running the drawer.

On average, we run two drawers per day - usually a morning and evening. The drawers and cash are all handled separately and all totals are notated on a worksheet that's reconciled to the Z report at the end of the shift. 

Our cashiers start their shift by counting out their drawer and notating the amount. There is a set amount that should be there. If it is under or over, that is notated. The drawer then runs with the baristas on shift ringing sales and handling transactions (there are multiple people in the drawer).

At the end of the shift, the drawer is counted and reconciled to the Z report. Any paid in/outs are tallied and the numbers must match. Exactly. We do not offer any sort of "buffer zone" for drawer counts. The numbers must be on the money. If there is a shortage, the cashier must make up the difference. Whether they do it out of pocket or from the pool of tips is their choice, however, the deposit must be on the money. Overages are notated and included in the deposit (It is "better" to be over, but consistent overages are also a flag).

After the deposit is removed from the drawer, the drawer is counted again and that figure is notated. It should be the daily start amount.

Tips are pooled amongst staff. Company does not involve itself in employee tips and admin personnel do not share in the tip pool nor do they involve themselves in the calculation, distribution or any aspect of tips. Company does not allow tipping on credit card transactions. Tipping is strictly cash.

The question about credit card tips came up about a month or so ago and I gave the staff the option of going to credit card based tipping. To do so would require a unanimous vote of the staff, someone to handle calculating tips and disbursement (this would not be a task or financial burden borne by the company), all staff would have to declare tip income on their taxes, credit card and processing fees would have to be deducted from the cc tips and those tips would only be disbursed in their bi-weekly paycheck.

I haven't heard about cc tips ever since.

We run everything as Credit. People do leave tips, and you can take them out of the credit just like a debit card, and it works fine. We also receive cash tips. We encourage customers to only give cash tips (because that's the best way IMO), but plastic is the way of the present or something...

So, I've noticed when I count the drawers at the end of the night, we'll usually be a little bit under compared to what we "should" be getting from our reports. So, what is actually happening? It could be that all my employees are stealing from me, (whether they know it or not). It could also mean that sometimes orders are getting rung through and aren't getting paid for accidentally. Another reason could be how the credit card processing works. I notice the shortage happens more when I have Amex on my print outs. And Amex is really unconventional for all business owners in a slew of ways that I'm sure I don't have to explain. 

We had a different pos before we moved. We used Aloha...and quite frankly it was total overkill. Now we use Ambur app through an Ipad. A lot of the same staff. And now we are short more often. My conclusion? Faulty reporting, or inaccurate reporting. It's either my fault, or the developers fault. But at this point, I can almost say with 100% assuredness that it has NOTHING to do with my staff.

Sometimes I'll find myself 10-20 dollars short, and I'll freak out. But it always finds its way back to the drawer by the next day. 

I guess my problem with the whole thing is that if you fail to ring something in a few times its easy to see an overage as tips. The only way to see the issue is with inventory and that's a bitch. i am not saying that its common but it does happen. I have talked to a few people that have worked in coffee shops in the past and have taken extra "tips." It's easy with exact change or the no sale button, etc. I see having staff going into the till to get money as a bit of a security loophole.

Really talking about different issues here.

 

1) Proper accountable cash management and handling

2) Credit card tipping

 

Without taking care of #1 if and how #2 handled doesn't much matter. As Jay illustrated in detail there are ways to properly manage the cash drawer. Pulling appropriate cc tips from cash can/could be included in cash drawer management procedures, as ours is. End of day daily.

 

If employee theft is a real concern: video cameras...

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