ORANGE pub owners and restaurateurs are disputing claims changes to credit card transactions could affect the amount, and frequency, of tips their staff receive.
A vital source of extra income, recent research from Sydney based eftpos company Tyro Payments suggests the eradication of signatures from credit card transactions, substituting to PIN numbers everywhere from Friday, will inadvertently deprive restaurant staff of tips.
Tyro staff found PIN usage in small-to-medium sized businesses has increased from 59 per cent of transactions in November 2013 to 78 per cent in 2014. In contrast, restaurants report only 66 per cent of credit card transactions are made via PIN numbers.
When signing a bill customers can add a tip at the bottom, but typically with PIN transactions the amount is locked when staff key in the details.
“Imagine cardholders searching in panic for cash to offer a tip, because they can no longer offer this as part of the signature process,” Tyro co-founder Andrew Rothwell said in a statement.
Despite tips being expected to fall substantially - similar to what was experienced in the UK - several of Orange’s premier restaurateurs and pub owners claim tipping is not as common as people think, and the effect of the changes will be minimal.
“We don’t really get tips, I just don’t think it’s the done thing in Australia really, let alone Orange,” Ben Cochrane, operator of the Parkview Hotel, said.
“It definitely won’t affect us or our wait staff, but we are a pub as well. It could affect the more high-end places around town I guess.”
Claire Vernon, manager of Kate Jones at One Nineteen, echoed Mr Cochrane’s sentiments.
“The changes won’t affect us as all our tips are generally cash anyway,” Miss Vernon said.
“Our card system doesn’t give customers the option for a tip anyway, sometimes they will ask us to add a bit extra but we just add it to our cash tip jar.”
“We never get tips on eftpos, I guess I’m not good looking enough,” Ben McKenna, owner-operator of Millthorpe Providore and manager of Factory Espresso cocktail bar laughed.
“I don’t think it will affect many around Orange, and I’m all for PIN usage for everything.”