How can i adjust the amount of tip allowed per transaction

[Playpen305]

Trying to find out how to adjust amount of tip allowed per transaction.  Currently not allowing customers to leave more then the transaction itself. 

[TheRealChipA · Accepted solution]

Hi @Playpen305 You can’t adjust the amount of the tip allowed per transaction.  And I doubt Square will ever allow us to do this.  Here’s why.

MasterCard, Visa, etc, have something called a tip tolerance amount.  In the case of MC it is 25% and for Visa it is 20% (last time I checked).  This tolerance only apply to pre-tip check amounts greater than $25, however.  Anyway, if a tip is more than those tolerances, then the fees (to Square) for that transaction will be increased because the transaction is downgraded to a non-qualified rate.  It’s probably obvious that this means that Square (who charges a flat fee to us and has to eat any excess costs) will be losing money on those transactions, which doesn’t make any business sense on their part.

Having said all of that, there is an exception to this rule.  IF the customer leaves a tip at the time of the transaction (ie - the customer enters the tip on a tip screen, then the tip is considered part of the transaction, not something added later when settling a transaction with the tip from a printed receipt.

I hope that helps.