Overview

Our tipping solution offers several integration options to collect tips from consumers.

Terminal tip prompting during a sale transaction

There is a set of configuration parameters for the Payment Terminal Application you can use to collect tips on the terminal during a sale transaction. By configuring the parameters once, the user experience for cardholders is the same every time. 

This is the flow for tip prompting during a sale transaction:

1. The point-of-sale (POS) application sends a sale transaction to the Payment Terminal Application.
2. The terminal screen displays the tip prompts based on the parameter configurations.
3. Once the cardholder completes the tip flow, they are prompted to enter their card for payment through tap, insert, or swipe.
4. The sale response data includes the total amount and the tip amount to be recorded in the POS application.

You have the ability to override the tip parameters on an individual sale by adding fields to the sale request message.

To learn more about this flow, refer to Terminal tipping sale flow.

Terminal tip prompting with GetTipAmount

The GetTipAmount operation allows you to collect a tip on the terminal independent of the sale transaction. The operation prompts the Payment Terminal Application to display options to tip on the terminal based on a set amount and return a response with a tip amount that the POS can add to a subsequent sale transaction. 

The benefit of this flow is to collect tip amounts from individual cardholders in the case of split checks, where each cardholder may want to apply their own tip. It’s also ideal when a party splits a check unequally, for instance where the entire bill is split amongst multiple diners, but only one person is paying the tip. The tip amounts are applied at the POS application, and individual sale requests are sent to the terminal to collect payment with the correct tip amounts applied accordingly.

This is the flow for tip prompting with GetTipAmount:

1. The POS application sends a GetTipAmount operation.
2. The terminal screen displays the tip prompts based on the parameter configurations.
3. The POS application collects the amount from the response and applies it accordingly to the appropriate sale.
4. The POS application sends a sale transaction with the tip amount included in the request.

You have the ability to override the tip parameters on an individual GetTipAmount operation by adding additional tip fields to the request message. Alternatively, program your POS application to use the additional tip fields to customize tip settings for every GetTipAmount request based on logic such as transaction amounts or order type to optimize tip amounts.

To learn more about this flow, refer to Terminal tipping using GetTipAmount.

Tipping on receipt using an authorization flow

In this flow, you present the consumer with a check for the total charges. When the consumer provides their card, you send an Authorization for the total and return a receipt to the consumer with space for them to add a tip amount and a total amount. 

Once you collect the receipt from the consumer, assuming they have left a tip, you have two options for capturing the final total including the tip amount. The following table compares the options.

Incremental Authorization also allows you to manage bar tab use cases where customers order additional items, to capture the increased cost. 

Incremental Authorizations and Completions must be sent to the same terminal as the initial authorization.

To learn more about this flow, refer to our card transactions page for Authorization and Completion.

Food and merchant category codes

The following are the MCC codes for food and beverage establishments where overcapture is common practice:

• 5812: Eating Places and Restaurants
• 5813: Drinking Places (Alcoholic Beverages), Bars, Taverns, Cocktail lounges, Nightclubs, and Discotheques
• 5814: Fast Food Restaurants

To learn more about MCC codes, refer to ISO 18245:2023.

Table service restaurant use case

In a table service restaurant scenario, the customer receives a paper check at the end of the meal and provides their card to the server. The server takes the check and card to the POS, which sends an Authorization request for the pre-tip subtotal. After the authorization is approved, the server returns with a paper credit card receipt that includes the subtotal, a space for the tip, a space for the final total, and a signature line. The itemized check and credit card receipt may be separate documents. The customer typically adds a tip, calculates the final total, and signs the receipt. The server then enters the final total, including the tip, in the POS application and sends a request to capture that amount. 

Required card transactions

When the consumer initially provides their card, the POS application sends an Authorization for the pre-tip subtotal.

After the server collects the receipt with the tip amount entered, the POS application completes the transaction using either of these flows:

• Overcapture: Send a Completion for the final total, including the tip. This is an overcapture because the completed amount exceeds the authorized amount. Overcapture limits vary by merchant category code (MCC).
• Incremental authorization: Send an Incremental Authorization to increase the authorized amount to the final receipt total, then send a Completion for that amount.

The consumer's credit card account

The consumer's credit card account initially displays the authorized amount as pending—for example, $20. After the final amount is captured and the issuing bank updates its consumer-facing interface, the pending authorization is replaced by the final captured amount, including the tip—for example, $24.

Bar tab use case

In a bar tab scenario, the consumer provides their card to the bartender with their first order to open a tab. The POS application sends an Authorization request either for the current subtotal or for a predetermined amount based on the bar’s typical tab size. The consumer may close the tab after the first round or continue ordering additional rounds.

As the tab increases, the POS application sends an Incremental Authorization when the subtotal exceeds the authorized amount. This increases the authorized amount and helps confirm that sufficient funds remain available to cover the growing tab. When the consumer closes the tab, the required payment flow depends on how the subtotal compares with the authorized amount. Refer to Required card transactions for details.

After the appropriate payment flow is determined, the bartender provides the consumer with a paper credit card receipt that includes the subtotal, a space for the tip, a space for the final total, and a signature line. The itemized check and credit card receipt may be separate documents. If the consumer adds a tip, they calculate the final total and sign the receipt. The bartender then enters the final total, including the tip, into the POS application and sends a request to capture that amount. 

A common use case for bars and restaurants that run tabs is to determine their standard order size and with any newly opened tab, authorize the card for that amount; for example, $40. If the consumer’s tab exceeds the authorized amount in a subsequent round(s), the POS application sends an Incremental Authorization for the same amount; for example, original $40 plus new $40 = $80 total.

Required card transactions

The following are required card transactions to complete a bar tab payment flow:

1. Open the tab: When the consumer initially provides their card, the POS application sends an Authorization for the current subtotal or a predetermined amount.
2. Manage the open tab: If additional orders cause the subtotal to exceed the authorized amount, the POS application sends an Incremental Authorization to increase the authorized amount.
3. Close the tab: The required flow depends on how the pre-tip subtotal compares with the authorized amount:
   1. The subtotal is less than or equal to the authorized amount: No additional authorization is required before the receipt is presented. After the bartender collects the receipt with the tip amount entered, the POS application completes the transaction using the applicable flow:
      1. Partial capture: If a tip is added that doesn’t increase the final total above the authorized amount, send a Completion for the final total. Any remaining authorized amount after partial capture is automatically released.
      2. Overcapture: If the tip increases the final total above the authorized amount, send a Completion for the final total. This is an overcapture because the completed amount exceeds the authorized amount. Overcapture limits vary by merchant category code (MCC).
      3. Incremental authorization: If the tip increases the final total above the authorized amount, send an Incremental Authorization to increase the authorized amount to the final receipt total, then send a Completion for that amount.
   2. The subtotal exceeds the authorized amount: Before presenting the receipt, send an Incremental Authorization to increase the authorized amount to the pre-tip subtotal. After the bartender collects the receipt with the tip amount entered, complete the transaction using either of these flows: 
      1. Overcapture: Send a Completion for the final total, including the tip. This is an overcapture because the completed amount exceeds the authorized amount. Overcapture limits vary by MCC.
      2. Incremental authorization: Send another Incremental Authorization to increase the authorized amount to the final receipt total, then send a Completion for that amount.

The consumer's credit card account

The consumer’s credit card account initially displays the authorized amount as pending—for example, $20. If the POS application sends an Incremental Authorization, the issuing bank may update the existing pending amount or display a separate pending entry for the incremental amount. For example, if the authorized amount increases from $20 to $40, the account may display one pending entry for $40 or two pending entries of $20 each. This presentation may continue with subsequent incremental authorizations.

After the final amount is captured and the issuing bank updates its consumer-facing interface, the pending authorization entries are typically replaced by the final captured amount, including the tip—for example, $50.