The up and up on ZIPTIP

On June 30,2011 cofounders Sherry Gorden and Lois Hamblet launched Ziptip.Inc., a service that allows diners to tip using smart phones and a paypall account.  They claim this new service will allow tippees more direct control over thier tips.  The cost for that control however is the 6% service charge.(3% to Ziptip and 3% to paypall).  This means a $20 tip becomes $18.80.  For some tipped employees, the cut could be worth it, especially if the employer steals tips or automatically deducts a tip amount from credit card charges. Tips received through ziptip are deposited directly into the tippees paypal account. They claim they are like cash and its up to the tippee to report these tips.

For the rest of us, who don’t want to give up 6% of the tip, these fees should be negotiated with both companies.     If the fees could come down, then this would be a great tool against corrupt business practices.

When tippees sign up, they receive a medallion. These medallions are like business cards with the server’s own personal coded symbologies. No personal info is exchanged, just the code.  The server can carry multiple copies of this medallion and just hand them out to customers, so that the customer can tip them at any time.  Or the server could just swipe the medallion on the tippers smart phone.   For more info go to

Recent forum discussion on

wiserwaitress in Albuquerque, New Mexico said: 6% is simply to high a fee. Lower your fees. Food servers can make as little as $2.13 an hr. We simply can not afford to give Paypall and Zip tip 6%. I would rather see energy put towards enforcing current laws so that employers comply rather than having to slice off more of my tip just to get what is legally mine already.

I appreciate your input.  Ziptip has lowered its fees and now tippees pay only 1% of the tip amount.  thank you.
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LH in Wakefield, Rhode Islans


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