Table of Contents:
Understanding UK tipping culture
Unlike in the US, where tipping is often seen as mandatory, tipping in the UK is generally discretionary. Customers may tip in restaurants, taxis and personal services like hairdressing, but the amount varies.
- In restaurants, a tip of 10–12.5 percent is common. Some establishments include a service charge in the bill.
- In taxis, rounding up the fare or adding 10 percent is typical but not required.
- In hotels and personal services, tipping is appreciated but depends on service quality.
The legal context of tipping in the UK
Legal Context of Tipping in the UK
The UK government has introduced laws ensuring fair tip distribution. Employers cannot withhold card tips or use them to supplement wages. Businesses must clearly state whether a service charge is optional or mandatory.1
Why tipping is discretionary rather than mandatory
Tipping in the UK is seen as a reward for good service, not an obligation. Unlike in countries where staff depend on tips to supplement low wages, UK workers are entitled to a minimum wage regardless of tips. Customers can decline a service charge if they feel the service was unsatisfactory.
How do credit card tips work in practice?
There are two main tipping methods:
Adding a tip on the receipt
Some businesses provide a printed receipt where customers can write in a tip amount before signing. This method is common in restaurants and allows customers to manually choose a tip.
Using machine tipping functionality
Advanced point of sale (POS) solutions offer a built-in tip-on-card option. When making a payment, customers can select a preset tip amount or enter a custom amount.
How credit card tips are processed
Unlike cash tips, credit card tips are processed as part of the total transaction. The final amount (including the tip) is charged as a single payment rather than a separate transaction. Businesses then allocate the credit card tip to employees based on their internal policies.2
How Clover streamlines card tipping
Clover POS systems offer built-in tipping features to simplify the process:
- Customers can select a tip amount on-screen before completing their transaction.
- Businesses can automatically allocate tips to employees through integrated payroll systems.
- Contactless tipping is available for Apple Pay, Google Pay and NFC-enabled cards, ensuring a fast and seamless process.
Advantages of card tipping
Convenience for customers
Credit card tips allow customers to tip easily at times when they don’t have physical cash on hand. Handheld POS devices allow on-the-go tipping in taxis, salons and restaurants, enabling a quick tip addition without searching for loose change.
Transparency in tip distribution
Customers receive a receipt showing the exact tip amount added. Businesses can ensure fair tip allocation using Clover’s automated reporting features, and employees can track their earnings more easily through digital payroll integration.
Increased security compared to cash tips
Digital tipping reduces the chances of theft or misplacement and prevents disputes over tip amounts since everything is recorded digitally. It allows businesses to distribute tips more securely without manual handling.
The future of digital tipping in Britain
As contactless payments become the norm, the UK is shifting towards a cashless tipping culture. Restaurants, taxis and service businesses are all adopting digital tipping solutions. Research from UK Finance indicates that 86 percent of payments in 2023 were contactless or digital, reducing reliance on cash.3
To stay competitive, businesses must embrace digital tipping solutions and:
- Offer preset tipping options on POS systems
- Use cloud-based reporting tools to track and distribute tips fairly
- Promote contactless tipping to customers using signage or verbal reminders
Embrace digital tipping with Clover
Clover’s versatile payment solutions make contactless tipping simple and safe. Whether through Clover Station Duo and Clover Mini for countertop payments or Clover Flex for mobile transactions, businesses can streamline tipping and improve customer experience. Contact us today to stay ahead in the cashless tipping era.
Bibliography
1 UK Government: Employment Rights (Tips) Act 2023
2 British Hospitality Association: Service charge and tipping guidance for businesses
3 UK Finance: Cash vs digital payments: The shift towards a cashless economy
