Right here’s Why ‘Tipflation’ Isn’t Going Away, In response to Monetary Specialists

If you feel like you’re being asked to tip wherever you go, you’re not alone.

In addition to rising prices and shrinkflation, customers are now being asked to tip more frequently than ever before. This rapidly evolving tipping culture is leaving many people feeling overwhelmed and frustrated.

What was once a way to show appreciation for good customer service has now become something that seems expected, regardless of the services provided.

Tipping Prompts Increased Dramatically During the Pandemic

Professor Ismail Karabas, an assistant professor of marketing at Murray State University, told Fox News Digital during a phone interview that the increase in tipping requests started during the pandemic when digital payments became the norm. Digital payment systems are known as point-of-sale devices, where most tipping prompts appear.

Several point-of-sale companies, including PayPal and Square, have pushed tipping requests into their software much more frequently, which is why you might see more options for tipping at fast-food chains and other establishments that didn’t typically ask for tips in the past.

Businesses Benefit From Digital Tipping Prompts

Despite having the option to remove the extra tipping prompt, most managers choose not to, as they reap the benefits from additional tips. The tips pay employees more which helps lower turnover rates, giving managers little reason to opt out — despite how customers feel about tipping.

Businesses asking for tips aren’t the only ones profiting, either. Each POS company charges fees on each transaction, including tips. This means these companies earn money from the sale and the tip. Karabas predicts that tipping prompts may expand further if there are no government regulations or interventions.

Customers Are Feeling Frustrated by Tipflation

Most customers don’t have the same favorable view about constantly being asked to tip as businesses do. During the pandemic, people tipped more generously to help small businesses stay afloat and show appreciation for service workers who helped keep communities running during the turbulent times.

A survey by Bankrate found that 66% of U.S. adults have a negative view of tipping. 32% of Americans are annoyed about pre-entered tip screens, while 30% feel that the tipping culture has gotten out of control.

Some Companies Rely on Tips To Pay Employees a Livable Wage

According to the survey, 41% of Americans believe businesses should pay their employees better than relying on tips. Some businesses in the U.S. are legally allowed to pay employees below the minimum wage and rely instead on tips to make up the difference.

When workers rely on their tips to make ends meet, this can lead to financial stress and anxiety. It can also leave customers feeling pressured to hit the tip button more often than usual.

There Are Times When It’s Okay Not to Tip

Etiquette expert Thomas Farley tells CNBC that constant tipping prompts feel pushy and needy for many customers, which leaves them wondering why businesses won’t pay their employees more.

Fortunately, there are several cases where it’s perfectly acceptable not to tip. Farley states you don’t have to tip anyone who earns a salary or works a trade, those providing counter service like cashiers, staff at open-bar events, or for poor service.