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Not sure how this would work, but it is common knowledge that when you use a credit card (CC), a percentage of your transaction is collected by the CC company. Different companies collect different percentages, but generally, its between 2-4%. How would a promotion work in which a given CC company
decides that the CC company will not charge for tips. Now this wouldn't translate into too great a reduction in revenue from CC purchases, but, if publicized well enough, it could change people's preferences regarding what card they use in tipped services. Externally conscious people would start using this particular card when eating out, getting haircuts, and other such activities. Eventually this preference may carry over into everyday purchases.
I know most people don't care about others, (what have u done for ME lately) but this could possibly become a subtle way of showing that you care or to make a good impression on others...
[link]
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Nice advertising scheme... kinda like Bank of America's 'Keep the Change' promo. (I strongly recommend *against* using that bank, they'll screw you over). |
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It doesn't help the person you tip, it helps you because you can tip a little more freely without worrying about paying interest on it. Well, I guess that does help the person being tipped because it increases his chances of being tipped. |
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I wasn't sure whether the business takes the charge for server tips, but if that is the case, then the business would be motivated to more prominently display and recommend that particular card. Perhaps they may even reward the servers (tippees) with the excess returned by the promotion. |
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