How do tips work?

How do customers tip?

  • Customers can set their tip % before every transaction using a slider on the app's pay screen.
  • When processing the order, you are charging them the final sale price, without tip included, because tip will automatically be calculated based on the customer's setting. 
  • Note: If you've already added gratuity to the bill, be sure to tell the customer so they can adjust appropriately in LevelUp.

Is the tip calculated before or after tax? 

  • Tip is calculated after tax.
  • When a LevelUp transaction is made, the total bill amount + tax = the final sale price. When the customers code is scanned, this amount (the final sale price) is entered into the LevelUp terminal or was already added on the POS. The customer would have set a tip and the tip would have been added on top of the final sale price, therefore calculating the tip percentage after tax.

Where are tips recorded?

  • Tip amounts are always recorded with transactions. These can be viewed both in the LevelUp Merchant app (click the History button), online (in your Transaction History on the Business Dashboard) and in the reports that you can download (Reports section on the Business Dashboard). So, if there's ever a question about the tip amount on a certain bill, you can look back to that date and that transaction to find the exact tip amount that LevelUp recorded.
  • Currently, the LevelUp merchant application does not record which staff members completed which transactions, but will show individual tip amounts right after an order has been processed. If you are using a non-integrated setup, we recommend using the same process you use for your staff to record their tip amounts on a credit card.
  • If you are using an integrated setup, your POS reports will indicate which staff members had tips and how much the tip was per each transaction.

How do I get paid for tips?

  • Tips will be included in the next day's payment cycle – how you choose to distribute them is up to you. Many of our merchants choose to split tips evenly across staff members, but you can see tips left on each transaction if you'd prefer to pay them out individually.
  • If you have an integrated setup, you will be able to see exactly how much each person made in LevelUp tips at the end of their shift so you can pay them out appropriately.
  • Note: Tips count towards a customer's progress on your loyalty campaign – this encourages very high tips and makes your staff happy!

Don't accept tips? 

  • We can turn them off at your business – just contact us at if you'd like this done.

Are you a restaurant that expects tips on most transactions? 

  • We can also put a friendly line in each LevelUp receipt reminding customers that they can set a tip using LevelUp if they forget to.
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