Czechs tip more generously when paying by card in restaurants

Czechs give larger tips when they pay by card in restaurants, according to data from Dotykačka, a company that provides cash register systems to businesses in the country. Dotykačka director Petr Menclík told ČTK that tips of up to 10 percent of the bill are not uncommon when customers pay by card. In contrast, tipping is typically around 5 percent when customers pay in cash.

Menclík said that businesses can use a feature called "smart tip" on their card terminals, which allows customers to choose a preset percentage or enter their own amount. He said that this feature has led to an increase in tipping, as customers are more likely to leave a tip when they are prompted to do so.

"They can also choose the option of no tip, but this almost never happens. As a result, thanks to payments through the terminal, companies receive above-standard tips, sometimes up to double," he said.

According to the company's data, 67 percent of culinary businesses accept cards, and the number is still increasing. Last June, it was 54 percent. According to the company, cashless transactions already make up almost half of sales in gastronomy. Last month it was 47 percent of sales, an increase from 43 percent in June 2022.

Financial group Roklen Fin’s chief economist Pavel Peterka said that restaurants or shops pay a fee to the bank when a customer uses a card, but the consumer pays the same regardless of the method.

"Logically, therefore, [the shop owner] prefers payment by cash. There is a solution for an additional fee when paying by card. However, Czech legislation prohibits this in the case of a purchase by a consumer," he said. He also mentioned the possibility of paying directly to an account using a QR code, a method allowing the company to avoid transaction fees.

There are a few reasons why Czechs may be giving larger tips when paying by card. For example, some people may feel that it is more convenient to tip with a card, as they do not have to worry about running short on cash later in the day. Psychologically, it is easier to go along with the higher suggested tip than to manually enter a smaller one.

Czechs in general, though, are less generous with their tips than many other nationalities such as German or Americans, according to a recent survey by payment app Qerko. 

Internationally, tipping is becoming a hot topic as not only do the expected rates keep creeping but more shops and services put out a tipping jar. Critics refer to this as "tipflation." There are a number of arguments in favor of tipping culture. Proponents argue that tipping allows customers to reward good service and encourage workers to provide excellent customer care. They also argue that tipping allows businesses to keep their prices lower.

There are also a number of arguments against tipping culture. Opponents argue that tipping is an unfair way to pay workers, as it leaves them at the mercy of the customer's generosity. They also argue that tipping can create a power imbalance between customers and workers. Tipping is not customary in all countries. In some countries, such as Japan, tipping is considered rude or offensive.