Interesting payment UX: went to a haircut place in US which wouldn’t let you tip on a CC but instead had a list of Venmo accounts for all the stylists.
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This is a thing. The least risky way from the salon’s perspective is to literally rent access to their facilities; contractor takes all market risk and pays flat rate per day. The slightly more risky way is for salon to pay contractor per cut for fulfillment.
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Also allows stylists to avoid taxes on tip-based income...
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Probably more likely that they just don't want to claim tips as income for taxes. Have to report for CC Tips, don't for Venmo.
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They’d still have fund flow through for the haircut fee, no? Or did each stylist have their own card machine?
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Neither stylists nor the salon owners are incentivized to allow gratuity on CC: Stylists can declare lower income. Salons have to eat the CC rate + FICA tax (≈10%). The customer is the one who ends up paying the "experience tax". Bill H.R.6736 may helphttps://www.congress.gov/bill/115th-congress/house-bill/6736/text …
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