CCPC shares guidance for tipping and tapping in Ireland
The Competition and Consumer Protection Commission (CCPC) has revealed new research and guidance when it comes to tipping in Ireland.
What does the survey say?
As well as examining the legal framework related to this area, and contacts received by the CCPC Helpline from consumers, an online survey was conducted of 1,048 consumers.
The research was broadly split into two areas: charges on bills, and the newer developments of tipping screens and tipping terminals/tap-to-tip machines.
The key findings were as follows:
9 in 10 consumers tip at least some of the time
Women and those over 35 are more likely to tip
2 in 3 believe tipping is becoming less voluntary
3 in 4 would like to see businesses make it easier to opt out of tipping
1 in 5 have recently paid a bill that included an unexpected extra charge
1 in 4 consumers who have encountered standalone tipping terminals have tapped them by mistake.
Tipping behaviour
Although 9 in 10 consumers said they tipped at least some of the time in at least one of the settings asked about in the questionnaire, over half (58%) agreed that they would sometimes rather not tip but feel they have to.
Separately, two-thirds (67%) believed that tipping in Ireland is becoming less voluntary, and three-quarters (75%) would like to see businesses make it easier to opt out of tipping.
Cash remains the dominant tipping method (89%), even when bills are paid by card. This is partially driven by a lack of trust (only 29% believe digital tips reach staff).
Tipping and tapping
Digital tipping screens are now familiar to two-thirds of consumers surveyed, especially consumers under 35 and Dublin residents.
According to the CCPC, opinion on these screens is split. While many consumers do find them easy to understand and even potentially helpful in leaving a tip, a sizeable minority disagree that it is easy to bypass the screens (25%), another quarter do not feel confident using them.
Additionally, some businesses use a separate tipping terminal. Of those who have encountered the machines, 26% reported accidentally tapping the terminal and unintentionally paying a tip – almost 1 in 10 of the total adult population in Ireland.
Consumer detriment
The CCPC defines consumer detriment as a problem that "caused you stress, cost you money, or tookup your time".
In the context of unexpected charges, one-fifth (21%) of consumers surveyed said they have experienced an unexpected charge on a bill in the past six months, with half of these stating that it was a mandatory service charge.
Almost 1 in 10 consumers report tipping mistakenly on a tipping terminal. Among those who did not intend to tip but were shown a tipping screen, around one-fifth selected a tip amount, and among those who tipped, around one-quarter tipped more than they intended.
What to know about service charges
The CCPC have categorised service charges into three areas: Mandatory charges, Quasi-optional charges, and Optional charges.
Mandatory service charge should always be notified in writing to the consumer on signage and on the menu in a clear enough manner so that they are unlikely to be missed.
Optional service charges must be opt-in only, not opt-out. No optional charges should be added to a bill without a consumer’s prior consent.
Quasi-optional charge is an "optional" charge added to a bill without consent, which a consumer needs to ask to be removed. This must never be included on a bill without consumers' prior consent.
All prices displayed to consumers in Ireland must be inclusive of VAT (and any other tax), so adding VAT as an extra charge at payment is not permitted.
A guiding principle for tips and charges is that the consumer should feel in control of the decision and the amount.
What are the CCPC's recommendations?
Tipping on a payment terminal should be easy to avoid
Prevent accidental tipping by keeping tipping terminals separate and clearly labelled
Mandatory service charges must be very clearly communicated in advance
Optional service charges must never be automatically added to bills
Recommendations for consumers
Be careful when dining out or engaging with other services
If you see a charge on a bill you didn't expect or which is unclear, query it.
If the charge was not displayed correctly, it should not be mandatory. Anything that is not mandatory is likely to be an additional, optional payment which you can have removed from the bill.
Traders who are not complying with their legal obligations in this regard can be reported to the CCPC.
Tip the amount you feel comfortable with.
Take your time, review the options and use custom amounts if necessary.
Pay attention to the area around tills and do not tap a card or eWallet device on anything until you are sure what it is and what value it will deduct from your card.
For more information and guidance on tipping in Ireland, visit CCPC.ie
