Today, the majority of transactions are digital. The use of credit and debit cards have allowed patrons to give tips without leaving actual cash or coins between the billfold.
While this works seamlessly for guests, it often makes it difficult for employers to have enough cash on hand to distribute it to their workers every night. This is just one of many problems with manual tip disbursement systems.
Fortunately, a new digital solution is available that easily integrates with existing POS and payroll systems and allows employees to receive their tips after each shift as they earn them while simultaneously easing employers’ difficulties.
Find out why it’s time for employers to make the switch to digital tip disbursements today.
Workers who rely on tips for the majority of their income are looking for safe and timely access to their earned money. As the majority of tips are now paid by cards, it takes longer for restaurants to process them, which means workers sometimes have to wait until payday to finally get those tip payments. When payday is a week or two away, this is an unrealistic amount of time to wait for money they’ve earned.
Without tips, workers in some states can take home as little as $2 an hour. This is a significant driver in sky-high turnover rates amid the great resignation. Providing employees with tips on the same day as they receive them can be the difference between a fully staffed workforce and a dwindling one. In starker terms, it can make or break a business.
While electronic tip disbursements can help current employees, it also keeps employers ahead of the competition. Many businesses are building up new staff with fleetingly attractive hiring incentives and sign-on bonuses. Now is the time to invest in technology that is going to benefit employees, not just in the short-term, but in the long-term as well so employers can ensure their business is future-proof.
The world is quickly moving to a cashless economy with tap-to-pay and digital wallet options becoming more and more common. However, many tipped workers are still getting paid in cash. Switching to digital tip disbursements may not only help attract more employees but also help with another driving factor that has taken on more urgent priority in recent years.
With ongoing health scares from Covid-19 and its variants, employers transferring tips to employees through cashless means is now considered a necessity by many. Employers and employees no longer need to handle cash, helping them avoid unnecessary exposure to germs and the potential for getting sick.
Electronic tip disbursements also saves employers the stress of having enough cash on hand each day. Instead of worrying about the possibility of theft, loss, or mistakes, employers who use automated tip disbursements can focus on more important things like getting ready for the next business day.
Risk is a strong incentive, but costly or inefficient installations are a risk of their own and can cripple a business for weeks. Why not just stay with manual disbursements? Well, as we all know, manual disbursement of employees’ tips can often be inefficient and error-prone with amounts being miscalculated or payrolls being thrown off. Thankfully, electronic disbursement installations are neither of those.
Automated disbursements unequivocally avoid calculation errors and processing delays to ensure that everything is as accurate and convenient as possible. In fact, Payactiv’s Tips & Mileage works seamlessly with your existing POS system to automate the tip disbursement process and never disrupt existing business processes.
Payactiv Tips & Mileage is a simple, safe, and fast disbursement of tips and mileage so employers can focus on growing their business and employees can focus on living. Tips are paid out within an hour of receiving the earned tips information from your restaurant, either via API integration or safe file transfers. And you don’t have to worry about cash flow as Payactiv will fund the tip payouts and give you a two-day cash float, allowing for your card transactions to clear.
Employees can get started with Payactiv Tips right away with our instant issue Payactiv Visa® Payroll Cards. They can be issued on the spot from day one, helping with your recruiting and onboarding efforts. Employees opt-in to the service from the convenience of their mobile phone and can monitor their earnings in the Payactiv app.
With businesses struggling to stay open now is the perfect time for employers to take advantage of current opportunities and invest in new technologies that streamline antiquated processes and create a brand new workforce for the future.
If you’re interested in Payactiv Tips & Mileage, request a demo here and learn more about our service here.
The PayActiv Visa® Payroll Card is issued by Central Bank of Kansas City, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Certain fees, terms, and conditions are associated with the approval, maintenance, and use of the Card. You should consult your Cardholder Agreement and the Fee Schedule at Payactiv.com/card411. If you have questions regarding the Card or such fees, terms, and conditions, you can contact us toll-free at 877-747-5862, 24 hours a day, 7 days a week.
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* The Payactiv Visa Prepaid Card is issued by Central Bank of Kansas City, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Certain fees, terms, and conditions are associated with the approval, maintenance, and use of the Card. You should consult your Cardholder Agreement and the Fee Schedule at payactiv.com/card411. If you have questions regarding the Card or such fees, terms, and conditions, you can contact us toll-free at 877-747-5862, 24 hours a day, 7 days a week.
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