Is it better to tip in cash or card?

Cash is King: Why Tipping in Green Still Reigns Supreme

In our increasingly cashless society, the question of how to tip has become a point of debate. While swiping your credit card might feel like the most convenient option, when it comes to truly rewarding your server, cash remains king.

Here’s why: When you tip on your card, the gratuity is processed through the restaurant’s payroll system, making it subject to income tax just like their regular wages. While this is completely legal and ethical, it ultimately means your server receives a smaller portion of your generosity.

On the other hand, cash tips go directly into your server’s pocket. While they are still obligated to report these earnings to the IRS, cash tips offer a level of discretion that allows servers to keep a larger percentage of their hard-earned gratuity.

Beyond the tax implications, consider the immediacy and tangibility of a cash tip. It’s a direct and personal way to show your appreciation for good service. Handing a few bills to your server allows them to see and feel the impact of their hard work right away, fostering a sense of connection and gratitude that swiping a card simply cannot replicate.

Of course, credit card tips are undoubtedly better than no tip at all. But the next time you’re dining out and want to ensure your server feels the full weight of your appreciation, remember the power of cash. It’s a small gesture that can make a big difference in the lives of those working hard to make your dining experience enjoyable.