With chip cards, the card is inserted or dipped into a EMV reading port. Once the transaction is complete and the card is removed, the clerk cannot go back and adjust or add a tip. What exactly does this mean?
Well, unless the tip is left in cash, customers will either be verbally confronted during the transaction regarding whether they would like to leave a tip, OR they will be prompted to leave a tip immediately after their EMV card is inserted or dipped.
Full service restaurants will be the last industry where you’ll notice this change because updating their point of sale hardware with EMV readers is a more expensive and complicated process. This naturally will delay the transition. However, you will notice this change immediately in many other tip environments such as nail and beauty salons, pizza shops, and quick service restaurants.
The days of writing a tip on your receipt for the clerk to add it to the transaction later on, are soon to be over. So once the October 1st EMV shift is in full effect, the next time you grab a burger or get a manicure, don’t be surprised if the clerk asks you upfront before the transaction “would you like to leave a tip?”.