New U.S. Credit Cards Just Made Paying for Your Meal Faster
Quartz reports a small slice of European living just made its way stateside. American credit card companies have officially replaced the magnetic strip system with an embedded microprocessor chip. A technological advance Europe embraced some time ago, the new chips significantly reduce the risk of fraud. The industry-wide shift went into effect October 1, requiring all retailers and merchants to feature new card readers. Merchants who fail to upgrade to the new equipment will be held liable for any fraud that occurs as a result of a charge.
The new system means when you’re dining out, you’ll be presented with a card reader at your table, on the spot. Gone are the days of waiting for your Amex to venture out on its own to be run and returned to the table. New cards stay in the machine for the customer to approve the charges. MasterCard and American Express suggest retailers add the tip at the beginning of the transaction. Basically, your dinner bill is going the way of the taxi, with default settings offered up by percentage on the screen.
This is all-around good news for both waiters and diners. The American Economic Journal reports that since implementing the default tip setting in taxi cabs, drivers have enjoyed a 10% boost in tips. The trend seems likely to echo throughout the hospitality industry.
Apparently when it comes to tipping, generosity is best served as a multiple-choice quiz.
Read more about the new card policy and its effects at Quartz.
Are you more likely to tip more if the amount is offered by default? Tell us in the comments below.