DipJar lets customers leave small tips with credit cards

DipJar credit card swipe

Detailed in the New York Post earlier today, a couple New York City coffee shops are trying out a trial of a new electronic gadget that allows customers to leave a tip for the barista with a credit or debit card. Called the DipJar, the silver cylinder is placed by the register and customers simply slide their credit card into the blue cup to tip the staff. The amount of the tip is already preset and listed on the top of the card reader in a bold font along with a description of the transaction on an information card. For instance, the two coffee shops list $1 on the top of the DipJar. Once the card has been swiped, the credit card information is encrypted and transmitted directly to the servers at the DipJar headquarters. According to the developer of DipJar, the credit card information isn’t stored in the actual hardware.

DipJar on counterThis is particularly helpful for small businesses where the vast majority of transactions are already on credit cards rather than cash. When asked about the creation of the DipJar, CEO and co-founder Ryan Kessler recounted a story about a day spent within a coffee shop.

Kessler stated “Everyone was paying with credit or debit, so the tips had plummeted. Baristas take really great care of me, and I didn’t like that they were working just as hard and making less money.”

According to the company site, the hardware is completely free to retailers. Similar to Square, it’s likely that DipJar will eventually make money processing each transaction and Kessler is currently promising that 80 cents on the dollar will make it back to the tipped baristas. They are attempting to push that figure to 90 cents on the dollar, but won’t be able to negotiate more effectively until the business grows considerably. According to USA Today, DipJar is covering the cost of the credit card processing fees during the trial run with the coffee shops in New York City and sending back the entire $1 value of the tip back to the store employees. Setting up the DipJar is as simple as registering the device, plugging it in and placing it next to the register.

DipJar front viewAs tips are collected with the DipJar, the total amount is pooled and divided up among employees based on hours worked. Managers are encouraged to verify the inputted schedules before a check is cut to the employee.

Payments are sent out from DipJar every two weeks, but not everyone is happy with the disbursements yet. An unnamed barista told the Post “I get a check for, like, six dollars every two weeks. I think people just don’t notice it.”

To protect against fraud, DipJar checks for repeated dipping on a specific credit or debit card. If someone sees charges labeled “DipJar Inc.” on their credit card and suspects fraud, all charges can be contested on DipJar.com within 30 days of the original transaction. After providing information like credit card verification and the location of the transaction, a refund will be issued to the charged card within 30 days of filing the dispute.

Emerging Tech

Early-detection system for wildfires could save many states from big burns

When it comes to dealing with the growing problem of raging wildfires, a new wireless smart sensor system could help spot burgeoning blazes before they rage out of control. Here's how it works.
Movies & TV

Out of movies to binge? Our staff picks the best flicks on Hulu right now

From classics to blockbusters, Hulu offers some great films to its subscribers. Check out the best movies on Hulu, whether you're into charming adventure tales or gruesome horror stories.
Smart Home

Brew it fast, hot, and flavorful with our favorite coffee makers

Whether you're looking for a simple coffee maker to get you through the morning or a high-end brewer that will impress your taste buds and your friends, you'll find some of the best coffee makers around on this list.
Mobile

The 100 best Android apps turn your phone into a jack-of-all-trades

Choosing which apps to download is tricky, especially given how enormous and cluttered the Google Play Store has become. We rounded up 100 of the best Android apps and divided them neatly, with each suited for a different occasion.
Outdoors

Light up the night! Here are the five best headlamps money can buy

Headlamps make all the difference when camping or walking the dog at night, especially when you're in need of both hands. From Black Diamond and Petzl to Coast here are some of the best headlamps on the market.
Emerging Tech

Elon Musk to unveil tunnel elevators and autonomous pods on December 18

We'll soon learn if Elon Musk's high-speed tunnel plan is a serious effort at ending traffic jams or little more than a fancy theme park ride. A big unveiling event is coming on December 18, a week later than originally planned.
Emerging Tech

Hear the sounds of wind on Mars from InSight’s latest audio recording

NASA's InSight craft has captured the sound of the wind blowing on the surface of Mars. The audio file was picked up by the air pressure sensor and the seismometer which detected vibrations from the 10 to 15 mph winds in the area.
Emerging Tech

The best drone photos from around the world

Most of today's drones come equipped with high-end cameras, which are quickly revolutionizing the world of aerial photography as we know it. Here are some of the best drone photos from around the world.
Emerging Tech

Feast your eyes on the wildest, most elaborate Rube Goldberg machines ever built

Want to see something totally mesmerizing? Check out several of the best Rube Goldberg machines from across the internet, including one that serves cake and other that do ... nothing particularly useful.
Emerging Tech

The 20 best tech toys for kids will make you wish you were 10 again

Looking for the perfect toy or gadget for your child? Thankfully, we've rounded up some of our personal favorite tech toys, including microscopes, computer kits, and a spherical droid from a galaxy far, far away.
Emerging Tech

Scoot your commute! Here are the 9 best electric scooters on the market

Electric scooters are an affordable, convenient way to minimize your carbon footprint and zip around town. Check out 8 of our current favorites, whether you're working with a budget or have some cash to spare.
Emerging Tech

Sick of walking everywhere? Here are the best electric skateboards you can buy

Thanks for Kickstarter and Indiegogo, electric skateboards are carving a bigger niche than you might think. Whether you're into speed, mileage, or something a bit more stylish, here are the best electric skateboards on the market.
Features

Has Columbus, Ohio raised its IQ yet? A progress report from the mayor

Two years ago, the city of Columbus in Ohio received $40 million to pursue smart city initiatives. So, what’s happened since then? We spoke with its mayor, Andrew Ginther, to discuss progress and what’s ahead.
Emerging Tech

Awesome Tech You Can’t Buy Yet: Folding canoes and ultra-fast water filters

Check out our roundup of the best new crowdfunding projects and product announcements that hit the web this week. You may not be able to buy this stuff yet, but it sure is fun to gawk!