Do you do Cashback on CC?

So we do up to $20 cashback on Debit cards. We also have done cashback on Credit Cards. In an effort to curb the CC fee, we discontinued cashback on Credit Cards. We got some complaints. So we started the cashback again but with "$1 Credit Card Transaction" fee to cover our fee. Not too many poeple complain, but few do as expected.

So far, I only have had few minor complaints and had one customer who vowed to never come back because of it.

Do any of you also do cashbacks on Credit Cards? If so, do you charge any fees or do you just eat the cost?

-tom

We do not do cash back on credit or debit cards, nor do we intend to. That's what ATMs are for.

WE make the customer purchase an item to do cash back or do it with the car wash purchase. And we only do up to $10 bucks. So most buy gum or a coke. On a side note, I don't think your allowed to charge the customer a fee to cover processing. I had a business want to charge me $5.00 extra to use my AMEX card instead of my VISA. I've never been back since. In my eyes its the cost of doing business.

What is the benefit of cash back?

Mainly it's to give tips to finishers. We are full svc.

We don't do tip box. Customers give cash tip directly to finishers.

Many customers don't carry cash and cashback is the only way to give tip

Hmmm... ATM. I guess we could do that. But if they are complaining about $1 charge, I would think they go nuts over the fees from ATM? Or would they be more tolerant since it's a machine and they know that suhh fees are normally accepted fees at ATM?

Jordan, so u guys do cashback. But do u do cashback on "credit cards" also or just on debit cards?

Tom, we do Cash back on CC and Debit cards. Debit is cheaper to run, but most customers don't know that and some don't care. The way I see it is if they buy a pack of gum that cost you .30 cents and sell it for $1.10 your making up the credit card fees with the gum sell.

If you check your credit card contract it prohibits cash back and you can loss your contract if you charge a fee. We do tips as a additional sale and just accept the fee as a cost of business.

Scott,

So you guys do cashback on credit cards, too? You physically give cash to customer? But isn't that also prohibited?

-tom

We put the money in the tip jar and the guys split it at the end of the shift. If you don't have gas you can have your machine programed the same as restaurants with a line on the receipt that the customer can write a tip in you then reopen the transaction and add it to the sale and that is not considered cash back.

Okay, so after hours of debating and thinking, this is the best solution we came up with:

1. Make a tip line on credit card receipt like the restaurants do.
2. If customer wants to leave tip, then they can put tip amount on receipt.
3. We settle the tips when the wash finisher leaves.

I thought this will maybe help guys make more tip too. Some people don't know that they can tip. But by having the "tip" item line on the receipt, perhaps it'll remind them to put few bucks to the hard working folks.

What do you think? Does anyone already do it this way? Is there anything wrong with this set up?

-tom

With a tip line wouldn't you have to go back though all your receipts that day and ring up the tips on the cards? How does that work??

We already have a system where when a customer pays, they get receipt along with separate "claim" check. We check "claim" check as a way to assure that we have the proper owner of the vehicle and also that they have paid for the service.

So, since we have this "claim" check process already in place, only other modification to do is to put a "tip" line on the credit card receipt just like restaurants so that the customers can put the desired tip amount on it. When our cashier sees the tip amount filled in, then they will write down the tip amount on the claim check. Customer will give that claim check to our finisher or quality controller. Ultimately, a claim check with whatever tip amount ends up on the finishers who finished the car. They come to cashier before leaving and settle it with cashier.

Again, I like this idea because it in a roundabout way let's customers know(at least the ones paying with credit card) that it's customary to give tips.

-tom

If you contact the credit card processor you use they can add the tip line and explain how to use the system. we have our register programed to allow the amount tendered to be entered and the change back goes to the ti jar. It does increase the tips without putting any pressure on the customer.

Tom,

That all makes since on our side, but our guys work in teams of two or three, how are they going to split up a paper tip without stop working and writing on the paper who gets it what. At the end of the day there not going to remember who and how much to split the tip with. It would only benifit the guy holding the ticket. Your next problem would be all your guys wanting to stop and wave the car off and fight who gets the ticket. I like the idea, I'm just trying to work the kinks out of it..

Thanks

@scott, so is there a particular reason you do communal tip jar? Is it because it's hard to split up the tips individually or the tip jar is more fair in some way?

-tom

@KwikkSS, we finish in teams of 2. Fortunately, we have pretty much the set team who work from start to finish together. In other words, we don't switch teams throughout the day.

Few other factors that goes for us:
1. Partners are typically family or have known eachother for long time.
2. Most people work full day. In other words, open to close.
3. All but only person has been with me for more than 1 year.

Our finisher scene has changed dramatically since we took over from previous owner couple of years ago. Our ex-GM used to pull her hair out every three seconds because some of the high school finishers will give her a hard time. But now that we have new line up of more "responsible" crew memebers, I feel that this "paper" tip will work fairly well. I have discussed this with the finishers too prior to starting and they all seemed positive about it.

I'm really excited what this can do for our guys. Like Scott says, I'm hoping that it'll increase the finishers and detailers' tip. Yeah, I would probably then see a bit hike on CC transaction fees, but ultimately when I think I come out winner too with happier employees. And hopefully the customers wouldn't mind it either as Scott mentioned, this is more "low pressure" way for them to tip if they choose to do so.

Our credit card processor supposed to implement this sometime today. Let me check it out for couple of weeks and I'll update you on the outcome.

Cheers~!

-tom

sweet let us all know

The reason we do the jar is it avoids the guys fighting over who talks to the customer or the fighting over who did how much on the car. It also tends to make the guys watch each other to make sure the work is getting done. They don't like sharing tips with guys that don't pull their weight. After 30 years of doing different systems this seems to be the simplest way to keep the guys motivated and take care of the customers and not get to involved myself with the tips.

@Scott, that makes sense too. I didn't think that way but I can see how the system will watch itself to make sure no one is getting a free ride.

Now, one more question on the logistics of it. What happens if someone is working open to close versus someone who works half day? Do you prorate based on number of hours they worked?

Oh, and one more, what if you have customer tipping in cash? Do you physically have a communal jar where they put the tips in? You then comibine that with the tips from the credit card?

-tom

pretty basic. a locked jar where customers can put tips in. If someone comes in at noon, the tips are pulled out of can and passed out to the appropriate people who worked during those hours where there were tips.

@2GreatCarWashes, so on a decetn average day, how much tip does one finisher make on average working open to close?

-tom

We do the tip jar way. It is based off of hours worked per employee. So the Vac ppl and prep ppl get the same as the exit end guys do. More hours you work more tips you get. Just goes in the safe at night and at pay period time, its all divided up and put in checks. Pretty easy. Have a computer Excel spreedsheet that does all the figuring.

Splitting the tips can be done by shift, day or week. I have done all of these.
Doing it by the week helps on slow days because the guys know the tips will be the same as busy days because it is based on hours worked. But as you know the average employee would rather have the cash ASAP. I have always gone along with what the crew wants since it's their money but find the system that fits your wash. As far as the tip jar we have a jar at the cashier area that all tips go in, when a customer puts the tip on the cc we take the cash out and put it in the jar this also helps the customer to know the money is going to the employees. We do have customers that feel they need to hand the money to an employee and then the employee puts the cash in the jar.

Just an update as promised. I was gonna try for couple weeks, but only after few days, I can tell this is AWESOME!!! No complaints or any hint of discomfort of any sort from customers. Both finishers and detailers are seeing slight increase in their tip. Smooth operation and everybody is happy. I don't have to deal with cashback on credit cards anymore.

So this definitely works for us and is a keeper!

-tom

Good to hear, I just changed CC companies and I'm having them set it up for tips next week. So just to make sure I got this right, Cashier is telling customers to give there tip receipt to the employees and at the end of the day there getting cash in return??

Setting up on your CC terminal should be fairly simple. I was on hold for few days waiting for my rep to set it up for me. I got tired so I called the CC support line and told them what I wanted to do. All they had to do is download some software(5 minutes) and we were set up.

We use DRB. It's set up so that when you tender out a wash transaction, it spits out a sales receipt and a claim check. Even before this new "tip" way, we always checked claim check to make sure that we had the proper owner of the vehicle and that the customer paid. Matter fact, our detail guys MUST staple the claim check with the detail order ticket in order receipt commission.

Now, since we already have this claim check system in place, only thing that the cashier needs to do is write down the amount of the tip on the claim check. Customer gives the claim check to the finisher. Finisher will come and cash it out at the end of the day or whenever we are down and there are no customers around. So fairly simple process. We do also have "tip" button and "tip cashed out" button at our cashier station so that the drawer will even out at the end of the day.

In practice our cashiers fumbled few times, but after just few transactions, it's a smooth as cruise control sailing.

Best part is our guys, especailly, detailers are seeing definite increase in their tip. And I had several comments from the customers that they like the convenience of it. I have not heard any complaints, so far.

Hope it works great for ya'll too!

-tom