Thursday, June 13, 2024
Dear Erica,
Lately customers have been asking if they can tip me with Venmo or Zelle. If I say yes am I breaking the law?
– Right Side of the P2P App
Venmo, Zelle, Paypal and any other peer-to-peer payment (P2P) apps that the cool kids are using these days have made our lives somewhat easier.
Some enlightened guests have even used these apps to pay each other for their share of the meal instead of asking their server to split the check-in 5 convoluted ways.
Guests are apparently evolving and want to tip servers using the apps.
The short answer is that you can more than likely accept tips via these P2P apps from guests.
However, a few words of caution – These apps are not insured. If the guest accidentally sends money to the wrong person,
you and the guest are at the mercy of the app to determine if there is any refund or dispute resolution process.
There is also an increased risk of fraud since you are potentially giving your information over to a guest.
And finally, you must also continue to follow any IRS regulations related to reporting income and tipping out any of your co-workers.
And while you may think this is like cash, it isn’t. The apps make it easier for banks, other institutions, and government agencies to follow a paper trail.
Keep that in mind if you accept any tips via one of these P2P apps.
On the bright side, at least the guests are trying to find a way to leave a tip as opposed to the alternative…