One of the big problems with payments shifting over to plastic is tipping. People tend to be freer with tips when cash is involved, for several reasons. That’s a big problem for your bartender, your barista, and pretty much anybody else that relies on tip income. So the DipJar was invented to solve that.
It’s pretty straightforward. It’s essentially a card reader in a steel can with a wireless connection. The reader doesn’t store your credit card information or otherwise keep any info about you. You just slip it in, slip it out, and the people who served you get a tip.
There are a few drawbacks. Since it’s processing a credit card, your bartender or whoever won’t get the full cash value. In fact it’s actually kind of crappy in the sense that for each dollar spent, twenty cents will go to processing fees and the like. In fact, as a rule, it’s a good idea to add two to three percent to any tip you provide to offset this.
On the other hand, it is a nice way for baristas and the like to get a tip where they were getting stiffed before, at least.
DipJar Lets Customers Leave Tips with Credit Cards [Digital Trends]