You tip your hairdresser, but what about your mechanic? Expect to see more 'tip creep' | CBC News

Customers are increasingly seeing a gratuity option on card payment machines in industries where tipping was never previously part of the cost, from auto shops to fast food giants like Subway and Domino's. .

"Tipping is spreading to a lot more places right now, so where we wouldn't have previously been prompted to tip, now it seems to be a lot more common," says Simon Pek, an associate professor at the University of Victoria's Gustavson School of Business who researches tipping practices.

As customers shift away from carrying cash, it's easier than ever for any business to ask for a little bit of extra money by adding the automatic prompt — what psychologists call a "tip nudge" — to their card payment machine.

Ten years ago, the tipping function on payment machines was "an afterthought" for most businesses, says Alex Povolotski, co-owner of PBH Canada, a provider of point-of-sale terminals and other merchant services.

When he and his business partner bought and took over The Car Clinic in Ottawa earlier this year, the card payment machine already had tipping activated — and they decided to keep it that way?

"As a mechanic, you get some people that do appreciate the fact that you worked on their car and they'll give you a little tip, but it's not very common," Mofleh says.

He says few customers complain about the tip option, but he is careful to skip past it before handing over the machine if it's a particularly pricey job. .

In private liquor stores in British Columbia and in some independent beer stores in Winnipeg, it's not unusual to see a tipping option at checkout — especially in places that share their licence with a hotel.

Both Mofleh and Guillemette say customers shouldn't feel pressure to tip at their businesses: it's an option, not an expectation.

Although a small number of businesses are moving in the opposite direction, ditching tips in favour of higher wages, Pek says he expects tip creep to continue into more and more businesses unless there is a wider public discussion about where, when and why we tip