Tipping: The Why and How of It

August 28, 2023


Many of your customers have likely encountered the dilemma of how to tip a budtender. Cash is not always convenient, especially in the age of digital payments. Some retailers choose not to allow tipping at all, while others only allow cash tips. We have found that customers love to tip with their debit card when given the option - in many cases, more than they tip with cash. Why?

  • It's easy and secure. Customers don't have to worry about carrying extra cash, or do the math to calculate the tip at the end of the transaction. They simply use their debit card to pay for the purchase and add a tip at the end – standard behavior at any coffee shop or restaurant. The transaction is processed through a secure platform that complies with banking regulations and their personal information.
  • It's fair and transparent. Consumers can choose how much to tip based on the service received and the quality of the product. On the receipt, they can also see the breakdown of the total amount, including tip, that they paid.
  • It's supportive and appreciative. Budtenders are knowledgeable and friendly professionals who help consumers to find the best cannabis products for their every need and preference. We all know that our budtenders also have to deal with various challenges above and beyond “normal” retail work. By tipping with a debit card, they can show their support and appreciation for the hard work of budtenders.


Around 95% of merchants opt in to the tipping option, which is compatible with all debit card platforms. After a customer’s item(s) are rang up, they are presented with the option to tip their budtender. The tipping function is fully customizable, which allows merchants to choose whether they want to use percentages or dollar amounts. Although both are good options, most merchants choose to use percentages because they find it to be the easier option. Using percentages also tend to bring in larger tips due to the fact that they take into account the overall price of a purchase.


Budtenders love POSaBIT tipping because it increases tips by a considerable amount. Cash transactions inherently put a limit on the amount being tipped. For example, if a customer walks into a dispensary with $80 in cash, and their transaction comes out to be $78, they will likely only tip the budtender the extra $2 that they have left over. On the other hand, if a customer pays with debit, they are more likely to tip, say, 10%, which brings the amount tipped up to $8, a significant difference from $2 at the end of the day. The tipping function gives budtenders the chance to bring home up to hundreds of extra dollars per week. This gives budtenders a reason to upsell, and on the flip side, enhances overall customer experience.


Customers love POSaBIT tipping because it allows them to reward budtenders’ expertise. The tipping function is one way in which customers can show appreciation for budtenders who go above and beyond. Just like tipping a waiter at a restaurant for excellent service, customers have the opportunity to tip budtenders for the time and care that they take catering to a customer's needs. Being able to reward budtenders’ extra work, such as listening intently to their needs, recommending products, or simply for having a pleasant experience at a dispensary is exactly why customers appreciate the tipping function.


POSaBIT reporting allows store managers to track tips through bbudtender-specificpin numbers. This streamlines the payout process, while also allowing store managers to pool tips. Furthermore, tipping bolsters budtenders’ incomes, without the store having to pay them.