HACKENSACK, N.J. -- Should the restaurant wait staff have to pay its share of the processing fee when the tip is put on a credit card bill?
Some restaurants have been reducing tips by assessing the fee for years, but the practice is attracting new interest as processing fees rise and profit margins tighten.
On one side are the waiters, waitresses and others who serve food and clear tables. They count on tips to supplement often sub-minimum wages.
On the other side are restaurant owners trying to remain profitable in the current economic downturn. They're asking employees to share the cost of the credit-card processing fee, normally around 2 percent. This is not a cost that the business should pay, they say.
The practice, allowed in most states, has been in place for at least 10 years, said Deborah Dowdell, president of the New Jersey Restaurant Association.
"Some members charge it, some don't," Dowell said. "It's not a consistent practice. And it's not relegated to fine dining or casual dining. It's done in a myriad of different segments."
The average processing fee is just under 2 percent, but it can be higher for low-volume restaurants. The national restaurant association does not keep records on how widespread the practice is, officials said.
Paying the tip in cash is the only way a customer can be sure that the money is going to the waiter, and not a bank or credit card company.
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