Employees in a number of industries, particularly restaurants and beauty salons, depend on tips for a significant portion of their wages. Tips were originally given in cash, but in the case of credit card processing, a tip may be added to the main purchase. Traditionally, adding tips to a credit card payment was known as a tip adjustment. The customer specified the tip amount on the receipt and the tip was processed together with the purchase total.
With EMV liability shift, companies began to look for card-present solutions. New innovations include payment terminals along with POS software. When a customer inputs a PIN to pay, contact with the payment terminal is made and, if the payment terminal software support the needed functionality, can input the tip amount. This allows the merchant to make the tip adjustment before authorizing the transaction.
Another important feature that merchants and restaurant POS software developers should consider is supporting division of tips among multiple employees.
More information on restaurant credit card processing, restaurant merchant accounts, and restaurant payment processing can be found at Paylosophy.
Also check out a brief summary at #UniPayGateway.