Many Canadians feel pressured by higher tip options on payment terminals

The culture surrounding gratuity in Canada has made many customers reach their tipping point, according to a new survey.

Hardbacon, a personal finance app, released the results of its survey on the tipping habits of Canadians on Tuesday.

"The survey particularly reveals Canadians' frustrations with tipflation and the average amounts given in various establishments," reads the report.

According to the survey, 65 per cent of Canadians tipped solely because the payment machine prompted them to.

Due to this, Hardbacon found that many customers have started tipping in establishments without table service, like coffee shops, when they pay by credit or debit. Whereas when paying with cash, customers tend to avoid tipping.

The survey also revealed that 62 per cent of Canadians feel pressured to leave larger tips due to the choices presented by the credit/debit machines.

Hardbacon

Respondents shared how frustrated they were with how establishments apply tip percentages to the amount after taxes and how most tipping options start at over 15 per cent nowadays.

Hardbacon

The survey also found that despite inflation, the most common tip Canadians leave at sit-down restaurants is still 15 per cent. That decreases to 10 per cent for food delivery apps, and 0 per cent at cafés or fast-food joints.

The most common tip given at hair salons and ride shares is also 10 per cent.

Hardbacon

"The survey results demonstrate that merchants' tactics to encourage consumers to tip more works, but they risk alienating their clientele in a context where we are all trying to adjust our budget to inflation," said Julien Brault, CEO of Hardbacon.

And you can see that alienation in the comments from the survey's respondents, suggesting that tips should be abolished.

Hardbacon

The personal finance app's online survey was conducted from January 9 to January 15, 2024. The total sample of this survey is 513 Canadians aged 18 and over.

What do you think about the higher tipping options presented to you? Let us know in the comments.