Use DipJar to leave a small tip with your debit or credit card

By on August 31, 2012, 4:30 PM

A new service called DipJar allows customers to tip baristas at coffee shops using their credit or debit cards. The hardware is currently being tested in a select number of New York City coffee shops and if successful, could expand to other locations and service-based businesses across the country.

The DipJar is a small cylinder-shaped device designed to sit near a cash register. Customers simply “dip” their card into the machine in order to add a pre-selected tip to their card. The tip value is prominently displayed on a sign just above the DipJar – usually $1. When a customer dips their card, the information is immediately encrypted and sent to DipJar’s headquarters for processing. The company says that no credit or debit card information is stored locally on the merchant’s end or internally in the DipJar hardware.

The hardware is free for merchants to use although DipJar does take a 20 percent cut of each tip. The plan is to eventually get that figure down to just 10 percent but they won’t be able to do so until the business grows substantially. DipJar is also covering the cost of credit card processing fees, at least during the NYC trial run.

Tips are pooled and divided among workers based on the number of hours they work each week. Payments are mailed out to employees bi-weekly and there’s even a built-in fraud system that can detect if cards are being dipped excessively. If a customer suspects fraud, they have up to 30 days from the original transaction to file a dispute. A refund will be issued within 30 days of the filing.

User Comments: 10

Got something to say? Post a comment
Guest said:

DipJar? Sounds like a spittoon.

1 person liked this | Guest said:

They are worth every bit of the 80 cents they will get.

1 person liked this | Guest said:

Pointless, most people who give tips give the change they get back from a purchase, meaning anything thats a coin, not bills. and they do it simply b/c they dont want to carry around annoying change in their pockets.

1 person liked this | ramonsterns said:

Yes, because I'm going to thrust some random card reading instrument to leave a pittance to some poor shmuck that served my coffee.

Tipping in general needs to go and the employee paid properly.

EEatGDL said:

Tipping in general needs to go and the employee paid properly.

Sad, but true. The idea of tipping a waiter has more sense because he's taking care of you trying to do his best; but for a guy who's just dispatching a product no matter the way he does it... not that good, and less if it's fixed.

1 person liked this | Jibberish18 said:

As if coffee isn't already insanely expensive for crappy quality, now they're finding easier ways for you to tip the guy making your crappy coffee.

WaveZero said:

Sounds like the owners will be able to screw over there employees even more now. Welcome to minimum wage v2! hahahaha =/

lchu12 lchu12 said:

Tim Hortons FTW!

spydercanopus spydercanopus said:

Put that 'dip jar' in the southern US and there will be people spitting tobacco into it.

Zoltan Head said:

I wonder if anyone has a device enabling them to not tip anyone?

Load all comments...

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.