PHILADELPHIA (CBS) – A city councilman says some Philadelphia restaurants have been taking their credit card processing fees out of the tips intended for the wait staff. He’s introducing a bill today to stop the practice.
Councilman Jim Kenney won’t divulge the names of the restaurants, but he says he’s heard of several that deduct the three percent processing fee charged by credit card companies directly out of the money specified by customers for a tip. It’s a practice Kenney doesn’t like.
“If I’m leaving an 18-20 percent tip, I expect that to go into the pocket of the person who waited on me, not three percent skimmed off the top to go to the owner of the restaurant.”
Kenney is introducing a measure in council that would prohibit any employer from taking a credit card fee out of a gratuity. The bill will be debated in committee.
Reported by Mike Dunn, KYW Newsradio