Businesses in every industry are constantly seeking innovative ways to streamline their operations and enhance the customer experience. Since the pandemic, one area in particular that has undergone significant transformation is point-of-sale (POS) software (previously known as the cash register and tip jar). Technology has revolutionized traditional cash registers, enabling retailers to leverage sophisticated systems that offer numerous benefits to customers, business owners, and service employees alike. A recent article from The Wall Street Journal, titled “Tipping Point of Sale Software,” highlights key advancements in POS software and the impact they have on how we tip.
Olivier St-Cyr, an associate professor of information at the University of Toronto who studies user-experience design, cites the “dark design” of these POS systems as exploitative of many people’s generous and go-with-the-flow natures. And it’s true – by manipulating the default options and settings in point-of-sale screens, business owners can encourage their customers to give bigger tips, software designers and behavioral economists say.
According to the article, in addition to letting business owners choose which tip suggestions to present to customers, owners can show tips in dollar amounts versus percentages, choose whether suggested tip amounts are calculated before or after tax, or decide whether the tips are based off the full or discounted value of a transaction. Nowadays, it’s not too uncommon to see POS screens include 25% as a tipping option. All of these changes have also short-circuited our normal decision-making process. Choosing whether or not to leave a tip used to be a passive decision. Now prompts on screens have turned it into an active choice, one that feels shameful if you choose not to.
With the rise of mobile wallets and contactless payments, most consumers now expect streamlined and secure checkout options. By embracing a wide variety of payment options, modern POS software accommodates a wide range of payment methods to cater to diverse customer preferences, reduce transaction time, and enhance overall customer satisfaction. The cost of tipping, however, is still what you make it.
While in the United States, it’s now customary to tip between 15% and 20% for most services, tipping is ultimately a way to show appreciation for good service and should be based on your own discretion.