Tip jars now take plastic - FOX 10 News | fox10phoenix.com

Tip jars now take plastic

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A New York man has developed a tip jar for the credit card generation.  It's called DipJar.

Ryder Kessler says he came up with the idea while he was in a busy coffee shop and employees lamented that tips were down as more people started making their purchases on credit and debit cards.

Kessler, who has worked for years in the tech industry, formed the company with his brother, Judd.

The DipJar sits on the countertop and customers simply swipe their card.  The machine takes a predetermined amount for a tip.  DipJar says most locations choose $1.  DipJar takes a service fee (of up to 20%) and the balance is disbursed on a regular schedule to employees.

The company has contracted two DipJars in New York. They are at two Oren's Daily Roast locations in Manhattan.  The machines are free to the retailers since the company makes its money off of transaction fees.

DipJar says it uses encryption to transmit credit card information securely to its servers.  It says its internal checks would combat fraud such as suspicious repeated dipping on the same card.

The company says it is looking to continue to develop the jars to accept other forms of tipping, like barcodes from mobile phones.

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