How to Handle Credit Card Processing Fees on Tip Outs

A guide for venue managers on accounting for merchant processing fee deductions when distributing credit card tips.

When customers tip via credit card, venues often incur a 2% to 3% processing fee on that transaction.

Depending on local labor laws, venues must accurately deduct or calculate net tip pools after factoring in these processing costs.

Ensure your net tip pool calculations account for exact card fees before splitting pools among your floor staff.