| I'm wondering why so many nail salons don't allow a tip on a credit card but virtually every other business does - what gives? |
| The obvious reason: so the employees don't have to claim tips as income on their taxes. Mine gives a discount for paying in cash, too. It's annoying. |
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Of course the obvious reason they want to keep it off the books. Other reasons include
- tips need to be paid out & there may not be enough cash on hand if transactions were all done on credit cards - it costs the business money to run each credit card transaction based on how much the transaction is. Means the business is paying a fee for money they aren't getting. generally the bills aren't high at a place like this so all those little fees add up and hurt the business businesses like that don't make much for owners. |
| Because the credit card company will charge $.50-$1 for each transaction. So, your $3 tip on a $15 mani is only $2, and a 1/3 cut in her tip. |
| OP again - I was wondering why just nail salons do this. I never see this practice at any other kind of business? |
Why very high end hair salon does not allow tips on cards either. For the same reason I'm sure. It really pisses me off. I'm pretty sure my hair lady makes more than I do and doesn't have to pay taxes on half of her income. |
+1. There is an ATM in the salon for "customer convenience." |
Pay your tip in pennies!
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