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What is up everybody? It’s Justin Live from B2B Vault, the Payment Technology Podcast sponsored by Nationwide Payment Systems, with your host Allen Kopelman! And we will be providing you with educational information regarding small business, FinTech, payment processing, and the technology businesses used in the world today.

And in today’s podcast, we’re going to be talking about the 20% tip tolerance. And there was a discussion on social media regarding this which was news to me. Answered a few questions that I had. I was befuddled a few times as to how my bill was less than what it should have been at a few restaurants after the tip.

I’m sure if anyone has ever went to a restaurant and tipped more than, a normal tip would be, you’re being generous! Right. My wife always says I’m more generous than I need to be, but I always like to tip, they don’t make a lot of money. If I’m there enjoying myself, and again, this goes how, if they’re going to do a good job, how many times they come to the table?

Did they check on us? Did they fill the water up? Did they make sure everything was hot? It could also be like a special person that serves you in the restaurant and maybe, that had a baby. A birthday. Yeah, it’s their birthday or something like that they go. In college trying to get home, there are just a lot of different situations that could happen. Right, but it could be like a regular waiter and you’re showing your appreciation. Maybe they had a baby, right? For sure. Some you go, oh, I’m going to leave from a hundred dollar tip. And you get, you find out that they didn’t get it. And I think that you know this is a good podcast for you to explain why or, reasons why they don’t get the tip. It’s not because of you, it’s because of the cardholder! Right.

So, what interested me in this subject matter was that there meant a few Facebook groups and people discussing an article, and the articles from 2021, a restaurant called Dead House, Deadwood Brew House. I looked it up, it’s in South Dakota somewhere. Got a little bit of coverage from the news there about people were leaving tips over 20% and they were getting chargebacks. Now, one of the things that they said in the news story, I didn’t really agree with was they were charging back the whole tip, and I’ve never seen that before. I’ve seen these chargebacks before and it happens a lot and it’s been happening, been in this business since 1998. Started this company, Nationwide Payment Systems 2001, and this is something we’ve been dealing with since 2001.

Now I know I used to have Capital One as a credit card. And I distinctly remembered that one of the things I liked about their cert, you know that card was if you went into a restaurant and you did tip over 20%, they would send you a text message. Nice. And they would say, hey, you left a better tip than 20%.

Did you mean to do that? Yes, or no? If you would say yes, obviously nothing would happen. If you said no, that’d be a red flag. They would probably charge back the amount over, whatever. They would say, Oh, what’s the correct amount? You’d type it in, and they would fix it, and the tipping rules have this tip, this rule.

I’m going to explain the rule. So you go into a restaurant, I’ll just use round numbers, so it makes sense to everybody. And your bill is a hundred dollars. Yes. So, when the waiter goes over to the credit card machine, now you got to remember, I’ve been doing this for so long. We started with the mag stripe, then in 2015, we switched to the EMV chip, okay!

And they never changed the rule, in any of this. Right? Now when you swiped the card or you dipped the card into the machine or the point-of-sale system, it calls out, and it gets authorization for $100 plus 20%, so $120. Now, if you tip over that, there’s a good chance that the bank where that card is issued is going to charge back the additional.

And I’ve seen it before, and we’ve talked like our clients over the years because we do a, we used to do a lot of restaurants. We do some restaurants today. We don’t do a ton, we don’t do a ton of them, but we have quite a few restaurants and bars, and nightclubs. Now, bars typically people I’ve been at bars for years.

This has been an issue for tipping at bars. Really? People normally, Yeah, people leave really good tips at bars. That’s because they’re drunk! Well, and they’re happy. And it could be that the girl is the bartender. Oh, of course. It is attractive, maybe. And, but people tend to tip more, and especially at nightclubs too.

You’re at a nightclub, let’s say you’re getting a table and the. Girls are coming over and they’re serving and right. And then you want to leave a big tip, right? People are showing off. Yeah. That gets those kinds of VIP services. So, we really started to encourage people you guys have, got to do a little bit better job and give the person the, print the receipt from the point of sale, leave a line for the tip.

So, before you go back with the credit card, they could write the tip in. Ask the customer, oh, then take their credit card back and do the transaction all by itself. So that way, let’s say Justin goes in, he knows the waitress. The waitress and her husband just had a baby, and he is Oh, I’m so excited.

And he gives a hundred dollars tip. Now if they did that, they could go back to the machine, and put in a hundred dollars tip. Now when the machine calls out, it’s calling out for $200. Nice. So, it’s going to get authorized! Right. For the whole full amount. The same thing, you have a device like this, which is wifi, there are tons of these devices.

We have all kinds of devices. You could take this to the table, right? Put it in, they bring up the check, it’s a hundred dollars, and ask you for the tip. You put your card in and then it calls out again for the whole amount. I like that. I like that technology and the way that works. So, the pay at the table is the way to go, the pay at the table is definitely the way to go! And we’ve put that in. We tell everybody you need to do a tip at the time of the sale. This way there’s no mistake the customer put the number in because you know what the credit card company doesn’t like. Let’s say Justin goes into place and if the bill’s a hundred and he writes down $30, Okay.

Maybe he wrote 20, but the girl says, oh, that looks like a 3, and then they punch in 30 bucks, and then it gets a chargeback and then you send it in, and it doesn’t look clear cause somebody looks at it. And they go and it’s over the amount, you got to switch over to this chip at the time of sale.

Learning all of this is just really, it’s going to, I’m also one of the people that usually carry cash to leave the tip. Cause I know that, how, that, sometimes they might not get that tip right away. It all depends on how the. Yeah, how the restaurant works functions.

So, this is going to make me even remember more to bring. Tip in cash! Yeah. So, let’s go over, let me explain, so first of all, let’s understand, people can do a chargeback for up to 13 months, but that’s not true that’s what they said in the story. It’s six months from the time of the transaction, I don’t know where they got their 13th month.

If the story was old, I didn’t really, if the TV station, why were people talking about it in the, in they were talking about it because they said they posted a story and then people were commenting from restaurants, from nightclubs. Other people that do credit card processing commented that they have restaurants that are dealing with this tipping thing.

Because during the pandemic, a lot of people were, that were regulars at restaurants started leaving bigger than usual tips. Ah. And so that’s why the story came out. Then they showed this lady at this restaurant, she had all these receipts piled up on the counter. Of all these over tipping and I saw what kind of point-of-sale she had. That point-of-sale I don’t want to say the name of it.

Yeah, because we don’t necessarily sell that one, but I believe it was one of the ones that have the ability to do pay at the table, and you got to switch to this. If you’re not doing this pay-at-the-table thing, you got to get switched over to pay at the table because of pay at the table or

let’s say you have to pay at the counter. Right! A lot of places have that you don’t pay them, you go to the front, right? You take your bill, you go to the front, you pay your bill, and they can give a tip at the time of the sale there too. And that way, it’s all authorized together. There’s no mistake.

You punch in what you want. The customer, we also have these as a customer-facing screen on it so the customer can put the tip in. You can have percentages pop up. There are all times of ways to cover it so that, it’s covered! So, let’s talk about it. You should definitely be doing pay at the table. Right!

And it’s the new technology. That’s the way the customers want to pay, that’s the way I want to pay. That’s the way Allen wants to pay. Yeah, if you want to pay, you feel safer paying that way, the card’s not leaving your site! We have some bars, and they have the terminals on the bar Wi-Fi, they put their card in,

They turn it around, hand it to the customer, put in their tip, and boom, it’s all at one time! And that particular bar they started doing that there. Even before we configured the machines before that. Nice! So, they could take the, even the old machines we had, they could turn them around and ask the person to put the tip in, even on the old, really old machines from years ago. Because they were getting tons of chargebacks on this over-tipping thing.

So, let’s talk about the rules and what it is so you know. An EMV also, like one of the people was saying why can’t we authorize the card for a higher amount? And I said that’s going to cause a huge problem because you have credit cards and then you have debit cards. You don’t want to over-authorize somebody’s card on a debit.
On a debit card, and the other thing business is. Imagine doing that to a credit card. So, who cares, it doesn’t matter on a credit card! On the debit card, it matters because it’s not going to come off. Why wouldn’t it matter on a credit card? Oh, because on your credit card, you have your credit limit.

When they settle the transaction, it’s going to change out the transaction. But on a debit card, you’re going to see the authorization and then you’re going to see the different amount for closing than the authorization on the debit card might not fall off for seven days. On a credit card, it could fall off in 24 to 48 hours.

Ah. And a lot of times it just comes, they just swap it immediately. You don’t see it! Really? Yeah, most credit cards, it’s taken care of. But debit does not work the same as credit. The other thing is gift cards, right? So, let’s say Justin comes into the restaurant and he uses a Vanilla Visa gift card.

Now I have a lot of restaurants, that will not take those anymore or they take them, but they know. The managers know the waiters know the waitresses know. Everybody knows you can’t add a tip! Because it’s worth a hundred, it’s not worth $120. Oh! And a lot of times you have to be careful.

There might only be 50 bucks on the card. Don’t just assume that there say a hundred, that there’s a hundred on it. So, you got to be really careful in restaurants with gift cards, whether it’s American Express Gift Card or a Visa gift card. You got to be really careful in restaurants and many times. Just owning a restaurant

This is like a lot of, it’s a lot got to be on. It’s a low-profit business. Gotta be on your toes. Yes, you got to be on your toes! So, you know, they have all these EMV rules and Visa has a rule, MasterCard has a rule. Discover has a rule, and American Express has a rule, right? So, one of the things that changed was in 2017, MasterCard decided.

They reinstated the use of the 20% tip tolerance on non-card present transactions by merchants. Now, this is in restaurants and eating places, so 5, 8, 1, 2, which identity eating places in restaurants. So that also caused a huge problem because during the pandemic you have everybody paying with a QR code, and that’s a non-card present transaction.

There’s a higher interchange higher rate. And on delivery. Yeah, on delivery and all that! And you’ll notice like on the delivery apps when those apps first started out years and years ago, the guy would come to your house and you could add a tip on to it, right? Now, they don’t do that! Now they ask you for a tip when you’re making the order.

Oh, do you want a tip? Yeah, why would I tip you if I don’t know if I’m going to get my food hot? I don’t know. But they have it, it’s on there. That’s ridiculous. And like with Uber too, the same thing, like when you go. You can’t tip on Uber, can you? Yeah, when you get it when you take an Uber. Oh yeah, that’s right.

You take an Uber, and they say, oh, do you want to leave a tip for the driver? And then if you go look at your credit card bill, they also had problems because they were adding the doing one. They were trying to do one transaction. So now when you do it, you’ll see on your credit card bill, you’ll see the ride was 40 bucks and then you left the guy a $5 tip.

You’ll see another charge for five. Because they tried to like, add it on before and had a lot of problems with that. They changed their whole system a few years ago. Besides the fact that they added five gazillion fees especially if you go, in Atlanta and it was crazy. There was a, they charged me an airport fee.

Yeah. They charged me a fuel surcharge fee and they charged me some other fee. I was like, Man, that’s crazy. And I left the guy a tip. So, you know, that’s the other thing, when you’re doing these non-card present transactions, you got to make sure it’s the tip at the time of the sale so that you’re not trying to add on a tip later because you can’t add a tip to a non-card present sale!

You can’t do it, there’s no adding on a tip. You have to put it in the process of the transaction and maybe the guy’s going to deliver. He goes, you’re getting a delivery. And the driver comes and picks up three, three orders of pizza. And he sees okay, Allen tipped 10 bucks, Justin

$2 and Anna tipped five bucks, he’s coming to my house first. I’m getting my pizza first, I gave 10 bucks. If I was driving, that’s what I would do! So, you never know, the tipping. But I noticed that out of all the apps, even if you go pick up food, they ask, do you want to give a tip? And I don’t know what, And also, there’s a lot of IRS rules about tipping and all that. I don’t get how some people. My neighborhood is so weird, man. No one delivers to my house. Really? Yeah. I don’t know why it’s stupid if I lived a block east, they would, they were like, yeah no, you’re just a block out of our range. But, so I don’t have any deliveries at the house besides packages.

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There’s one pizza place that delivers there and it’s terrible.
So, there were all these tip rules, right? And, in 2015, MasterCard announced they were going to eliminate the tip thing, but they didn’t do that, and it’s very complicated. You can’t have all these rules for merchants. How are they supposed to know, oh, this company does 20%, this one does 25%?

This one doesn’t allow this. The one doesn’t allow that. The safest way for restaurants is to do a tip at the time of the sale. If you’re writing the tip. Okay, number one, the customer could do a chargeback themself because they could get the bill and go “I didn’t tip 30 bucks”. I don’t remember, do that!

I only tip 20 bucks and they could charge back $10. And then you get hit with a chargeback fee of anywhere from, let’s say 15-20 bucks up to $35 dependent on the credit card processor. Okay! And, you got to work it out in your restaurant. You got to figure out like, oh, what’s going to be the best flow? Is the flow going to be, we’re going to take the terminal to the table?

If you’re a bar, at a bar, at listen, I have one bar over here in Fort Lauderdale. They literally have three terminals at the bar, so three bartenders on busy nights set three terminals. You order your drinks, you’re ready to pay. Bring you the machine. You put in your tip, and boom, you’re done.

You sign on the screen with your finger, and you’re finished! You know you, there are ways you can do it. I have another restaurant that we just hooked up and they ring up all the food that goes to the kitchen, and they serve. Then when it’s time to pay, they bring the bill. And then you go to the front, and they have a cashier there, and then the cashier takes your credit card and then you see the tip.

Those types of places, do they have a lot of people to dine and dash? Not really! Is that a thing still? Dine & Dash? Yeah! It’s just so you know, it’s a felony in probably all 50 states. I’m just wondering because when those, it’s like honesty policy for those types of restaurants. Yeah, I used to eat at this one place.

They stopped doing it. You would order your food, get it, take it to the table, and eat right. They had a cooler with beverages in it. That’s what I’m saying, like those types of restaurants! You went over and took your drinks and all that. There are a lot of those in South Florida, man! If you wanted cookies, you went up and

a thing of cookies. And then when it was time to leave, you would just say, oh, I got this, that, blah, blah, blah, blah, blah. And then they would just ring it up. So, there’s a restaurant there’s a place that I take my wife to, I’m not going to say the name because I don’t want it to get popular.

It’s popular enough. Haha! They, it’s busy enough. It’s a New York spot, like a deli breakfast spot. And that’s the type of restaurant it is. It’s honesty, you order food, they bring you your food, you take your drinks, muffins, chips, whatever it is that you want, and then you got to go up to the counter and they’re like, what did you have?

And you say I had breakfast with, a potato breakfast sandwich, two breakfast sandwiches, and I almost forgot the potatoes once, the side potatoes. And the guy who took my order said, don’t forget those potatoes. I was like, Yeah, you’re right I did! You know what I mean? Right!

So, it’s just, I don’t know, like where I’m from in Milwaukee, they’re not doing that. Yeah, because the place I was telling you about that, they used to do that they stopped doing it because yeah, there was probably like, they probably noticed oh, there was a little bit of theft or new stuff’s not getting paid.

They’re not like, hey man, we sold all of our beverages. We don’t have any beverages. So, now when you go to the register, they just have you pay. When you’re done ordering your food, you just pay for everything. They go, what do you want for the drink cooler? You take it out, oh, you want some cookies?

You grab the cookies, they put it all on there boom, and then they ring it up and then you put it and they have a customer-facing screen. You put in your tip. They used to ask you what the tip was. Oh, how much tip do you want to leave? You’d say Three bucks. They didn’t really have people serving you, it was like counter service.

Yeah, I don’t for that. I’m sorry.! No, I’m just saying that. Do you? Depending on how quickly they took care of me. That’s true because it depends on the spot. Well, they’re making you your food! Depends on the place, that’s for sure. In that place it’s a Swarmer restaurant, so the guy’s like making your, oh, how do you like your swarmer?

Oh, I took you there. Yeah. To that spot. They make your food for you. And they, now if they’re being, I could see that I, you could like tip that guy. But I’m saying like if you went to a place like that and then they’re not giving you like great service.

Okay. You don’t want to leave But I don’t even notice like I go to some sub, there’s like a, I don’t eat bread anymore. So, there was this sub shop down here and it’s funny like you had ordered your sandwich and then have a guy slicing the meat and then he basically takes the meat.

The way they make the sandwich is really to weigh it. No. And the guy throws it to the guy and the other guy catches it in the bread. Uh Huh. It’s like a crazy sandwich job. But they. Jimmy John’s used to do, something like that. They used to do that. Some similar, yeah. They had to stop because they were dropping too much.

Yeah, this place they’re at the same counter, so he just tosses it over to the guy. This kind, The cool sub shop! What’s the name of this place? Laspada’s. Is it down here? Yeah! And then they put, and then they put the meat on the bread, then they make a top, so then they put all your fillings in there.

Then they put meat on top and then they tuck it all in. With the bread? Yeah, it’s amazing! Yeah, with the bread it’s an amazing sandwich. It’s amazing. They make the most amazing sandwiches there at that place! And I would go there and get like a giant sandwich for a Sunday. Yeah, for the game? Then that lasts, like for the whole.

You know it lasts. You have your three, you get it in three pieces. You have your first game, the middle game, and dinner. Like a massive sandwich. But I don’t eat that anymore. But I did go there once and I got the sandwich and then I took it home and I just took the, took it off the bread. It was still very good, very tasty.

You put a lot of food. No, but you got to do you, if you have a restaurant and you’re not doing tips at the time of the sale, you need to switch to this. This whole 20% thing will go away. Completely, go away. You’ll never have to deal with it again. Listen, it’s a little bit, of training the servers, training the staff.

I even have, I’ll give you an example of the tip at the time of the sale. We have a tow truck company, and they use our texting software. And we program in there, tip. And we have other companies, plumbers, electricians, where they have employees and then people want to tip, they notice during the pandemic nobody’s tipping because people didn’t have cash on them because they weren’t out and about as much. Right!

So, I told the guy, why don’t you just activate, we contacted everybody using that software. Hey, there’s a tipping feature. Why don’t you use the turn on the tipping feature? And in a lot of these places, the employees are much happier because they’re getting tips. A guy comes to your house, and they fix something, right?

You want to tip the guy 10 bucks, right? Or 20 bucks. And then if you don’t have cash on you, you can’t do it. But if you had the tip button, boom, and then it’s a tip at the time of the sale! Right. So, the same thing when you go to a restaurant. And we also notice that when restaurants started doing this, the tips went up.

Customers feel more confident in what they’re doing. And if you pay by QR code in these restaurants, it comes up and asks you what the tip is. They don’t ask you to write it on some paper. And you have to put it in at the time of the sale. So, you got to get to the tip at the time of the sale is the way to go.

And 2015 when they started out with EMV became a big thing. Tip at the time of the sale, what we started a long time ago. But I still have a lot of old school restaurants and they have, I’ve one guy whose very old school, they don’t want to. Tip at the table. Right? Why?

Because they don’t want to change. And the man, the owner doesn’t want to put his foot down with the employees, right? So, I told them, you don’t want to do that. Do this. Print out the slip from the point of sale. With a tip line on it. Take it to the table and ask the customer to fill it out. Then take them, you got to go back anyway and run their card, right?

You’re giving them the bill but give them the bill with a tip line on it. Have them write the tip down, then go back to the machine, put the card in, and make sure the terminal prompts them to add the tip, the server puts the tip in. Now the whole amount is authorized. So, there is a workaround to doing it the old way, and that’s what you got to do.

So I went over to this restaurant, met the point of sale guy there, and I go, Dude, just program it like this. Oh, why do I have to do that? I’m like, look how many chargebacks I’m showing the guy all the chargeback letters. I’m like, Come on, what? Are you kidding me? That’s what you guys got to do. You can’t do it this way.

People are tipping too much money. The owner was arguing about you? No, the point of sale guy was like, oh, why do I have to do that? And I was like they don’t want to. They need to do a tip at the time of the sale. You can have somebody come in here and order 30 bucks worth of drinks and leave a $30 tip.

It’s getting charged back all the time, and they got 5, 10, or 15 of them a month. So just fix things so then the bartenders now know in the waiters they hit handed to the person with a pen. Please write your tip in. They write the tip in, and they go over, put it in the computer, and it’s all authorized.

Guess what? No more chargebacks for tips. Nice! On the tipping feature. So, you, that’s what you got to do. Tip at the time of the sale get rid of all this. I don’t know, we’ll tag this maybe we’ll tag the newspaper and the TV station in the podcast. Right. When we post it on social media, we’ll find the article and tag them in it or something.

I don’t know. It’s from 2021, but hey, anybody you know, you own a restaurant. Maybe you want to discuss this, but you don’t do. Maybe you’re getting these 20% over-tipping chargebacks. I’m sure they are! You want to discuss it? Give us a call. You can book a meeting, text the word
B O O K to 9 5 4 8 2 7 9 8 1 8.

You can book a meeting with me or Justin. We’ll go over this with you. Like I said, it’s way, it’s the easiest way to solve the problem. You either do the workaround method, you have people pay at the front and you use the tip at the time of the sale. There you have the terminals, you get the terminal.

And you get them, or the tablet and you bring it to the table, and you let the customer do it. One of the most popular point-of-sale systems today is Toast, right? We don’t sell Toast. Okay. But Toast is one of the most popular ones, right? It’s very popular. We talked about it on another buy gas. Over 64,000 restaurants use Toast.

Everything is a tip at the time of the sale. They either bring the tablet to the table or you go to the front and then you put it and when you go to the front, you got to put in your tip on the thing. I’m going to have to look and do some research on toast! Right? So, tip at the time of the sale, they don’t have a reseller program, so we don’t resell that.

But every point of sale has some kind of tip at the time of the sale software. Many of them have that. You have a station for your bartenders, and then the waitresses can walk around with a tablet, and come in a protective case, right? Boom- boom! Do the order. They can place the order on the tablet,

A person can pay on the tablet, or you have them place the order on a machine. Then they can bring the tablets to the table to pay. However, you want to do it, but you got to do the tip at the time of the sale. This will stop the whole 20% issue that’s going on. And I thought I would cover that because I couldn’t believe there was probably all together in the, there were a few discussion groups, and there were several hundred comments.

Really? Yeah, and some people were like, oh, why should the business? Why should the business have to buy all these tablets and all that? Why don’t the credit card companies like the card issuers send the person like a text message and go, hey, did you mean to do that? Yes, or no? I agree, but this sounds like a lot! EMV was created, so the card did not have to leave the person’s side,

didn’t have to leave you. That’s what it was created for! So, no one had to take your card and walk over to a credit card machine. That’s more or less what it was created for. But you could fix it in an old style. Like I said, you can create a ticket, and have a tip line on it. The customer writes the tip in, goes over to the machine, puts it, adds the tip in, and then calls out for the whole author.

So that’s easy. Yeah. And then somebody else suggested why not over-authorize the card? And that could cause a problem too because, on a lot of systems, they’re not using tokenization, right? So, there’s no token. So, then you have to go take the card, you got to open the, you’re going to put the card in for a higher amount.

But then if you’re going to. When you want to change the amount, you have to put the card in the machine again, unless that machine is using tokens. Ah! And a lot of times those tokens do not work on changing the amount, so it’s not going to work. That’s not a foolproof way that would go across every type of system.

Right across every type of system. What I’m explaining works, no matter who you process your credit cards with, no matter what system you’re using, the workaround method works the tip at the time of the sale works. There are tons of hardware and software choices out there that are very affordable.

Yeah! And you won’t be, you won’t have a headache as a restaurant owner of getting these chargebacks. So that’s the most important part, upgrade your tech. We always talk about this. Technology is the great equalizer and thinks about it. If they’re paying at the table, you could get people in and out of your restaurant faster.

Too, because they’re not waiting for the waiter to go back to the machine. They just come over and pay. Boom! It’s just so convenient, man. Text the receipt. Save on paper. Save money on paper. There is no paper, I usually don’t get a receipt. But I’m just saying you can email or text the receipt with most of those software.

99% of them text or email the receipt! Yep. The person gets it in their text message. They’re happy they could take it, put it in their QuickBooks, or whatever they’re doing. So, it solves a lot of issues and consumers feel much safer not letting their cards out of their site. So that’s today’s podcast, 20% tip dilemma, right?

When people tip over 20%, there’s a dilemma! What do I do as a business owner? So, we explained it all. What do you think? I think that you should listen to what Allen said. I think that people should be doing tips at the time of sale, I think. As a consumer, what do you think is that? I want to be able to, but I don’t, I want it to be if I want the server to get the tip, right?

So, I don’t want to find out that I left the bigger tip, and you go back to the restaurant, and she never got it. So, these businesses, these restaurants, get with technology, man, it’s time to step it up a little bit. I know it’s hard to adapt and, embrace change for the older generation.

I watched my father struggle with it. I watched my mother struggle with it. I watched my grandparents struggle with it, so I get it right. Yeah. Like I totally understand. Me being in web development for the past 10 years, trying to explain technology to clients and Allen it’s a struggle, right? So, it’s I get it.

Like, we don’t want to change. We do something every day. That’s the way that we’ve been doing it since we’ve been born. We don’t like change. Yeah, that’s what restaurants tell me. Oh, we’ve been doing it this way for 20 years. Exactly. Okay, guess what? The rules change,

things change. There are better ways of doing things! Why? And then also, why sit there and complain? Like I saw hundreds of people complaining about this tipping thing because one of the groups was a restaurant owners group. And a bunch of them were complaining about it.

And I was like, man, I can understand you don’t want to spend a lot of money, right? Maybe it’s a big expense. You got to call more companies. You got to, find somebody, say, hey, this is my budget. What can you do for me? There’s always a solution. Yeah. There are tons of companies out there we work with, tons of different companies, that have all different types of price ranges.

The business for point of sale is shifting too, I think we’re going to see a big shift in point of sale to more of a hardware and software as a service. So, people aren’t going to have to spend tons of money on it, it’s like upfront costs to get point of sale. A lot of that. It’s fairly inexpensive now, isn’t it?

But I’m saying is because now there are a lot of companies where it’s hardware and software as a service. Oh, I get what you’re saying, yeah! So, if you don’t want to make big capital expenditure and buy a whole point of sale. You’re talking about all the other stuff that the plugins and extensions?

I’m just, I’m not talking about that. I’m talking about like when you, like in the, like 20 years, 10 years ago, you had to go buy the point of sale system. Let’s say it was, let’s say you needed four stations. Each one was like 7,000 bucks a station. Right Now, today, I get what? You don’t have to do that.

Now, today there are companies out there that do hardware and software as a service. Sure, credit card processing might cost a little bit more, but you’re not putting out, “what you call it”? Putting out a capital expenditure. Ah! You’re not taking out a lease,

There are other ways to do it. Some people still will buy these more enterprise-style systems, but for the small business owners, a small, medium-sized restaurant that maybe only needs two or three stations or five stations, right? That’s why they’re so popular. There are companies that have hardware and software as a service, and you don’t have to have a huge capital expenditure.

So, it’s something to look into if you’re on a limited budget. You have to look at it. I ask people all the time what’s the budget. What’s your budget? You got to, you can have. And be realistic with me and yourself when you answer me. Right! Yeah. What’s the budget?

And somebody, let’s say you got 15 stations in a restaurant, right? You’re not going to be able to use a cloud-based point of sale for that. It’s not going to work fast. It’s going to be very slow. You need a server-based point of sale. So, everything you know is relative to the size of the business.

But for the SMB market, there are definitely answers. You can do hardware and software as a service, forget. Forget dealing with these over 20% tip chargeback things. And that’s it! That’s the podcast for today. Hope you guys enjoyed it and over and out, listen to B2B Vault. We’re available on all the podcast networks!

Like what? Spotify, Pandora, Amazon, Stitcher, iHeart. Apple? Apple, Google Podcast. Head over to YouTube as well. Yep. So, check us out. Peace out! Carpe diem. Good luck to everybody. PEACE!

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