I've never had the cc handling fee charged back to me when I was working in restaurants. I imagine that would be illegal?
For those who are curious how the waiters get credit card tips, it works something like this (at least this is how it worked where I have worked). It's a bit confusing so bear with me.
The waiter acts as sort of a "bank" for each shift - that is, the money on items the waiter "sold" doesn't go to the actual restaurant until the end of the waiter's shift. The waiter holds cash transactions and credit card transactions in his pocket. At the end of the shift, the waiter has to basically reconcile the transactions with the restaurant.
He closes out all of his checks, each is coded as "credit card" or "cash" or "gift card" etc. If he has a credit card tip(s), indicates the amount of the tip on the computer when the check is closed out.
Once he is finished, he runs a report of all his sales and transactions for the evening. Then he "pays" the restaurant the sales, minus the credit card tips he is owed. If the waiter has no cash because all of his tables were credit cards, the restaurant pays him the credit card tips. It's all outlined on the report. If the waiter had all cash tables (rare), he simply pays the restaurant what he sold, and keeps the rest. Usually it's a combination of cash and credit card sales, so the "reconciliation" is important. The manager usually has to sign off on the report before the restaurant will "pay out" or accept the waiter's "pay in."
Then typically, the waiter uses his own remaining tips (by this time, all credit card tips have been converted to cash) to give a percentage (usually a percentage of his sales, not of his tips, although this is really up to the waiter) to the bartender and another percentage to the busboys. This is called "tipping out." Tipping out is important, not only because the bartenders and busboys work hard and deserve it, but because they remember which waiters are "good tippers" and the service they provide YOU as a waiter can be affected either positively or not so positively.
Sammich - thanks for the Reservoir Dogs bit! I had forgotten about that.
Updated On: 4/20/07 at 10:40 AM