Why Tip Management Matters More Than Ever
Tipping has always been a huge part of the bar industry, but with new UK tipping laws now in effect, bar owners must ensure 100% of tips go to staff—without deductions and with full transparency.
The Employment (Allocation of Tips) Act means businesses can no longer withhold or unfairly distribute tips. Staff now have the right to request records on how tips are allocated, making transparency more important than ever.
If your bar still relies on outdated manual systems, now is the time to upgrade. A clear, automated tip management system can help you stay compliant, keep staff happy, and eliminate disputes over fair tip distribution.
For bars that want to streamline operations beyond tipping, we’ve also covered how to speed up service with queue management tools and the best KPIs every bar should track to improve profitability.
Here are some of the best tools available to streamline tipping in your bar.
The Best Tip Management Solutions for Bars
yetipay – Best for Integrated Card Payment Tipping
With fewer people carrying cash, most tips now come from card and contactless transactions. yetipay makes tipping easy by allowing customers to tip directly when they pay, with a system that ensures tips go where they should—fairly and transparently.
• Tips are automatically processed and tracked with each card payment.
• Works with Pay @ Table, allowing guests to tip with ease.
• Ensures full compliance with UK tipping laws.
yetipay offers a seamless, built-in tipping solution that removes the need for manual tracking or disputes over tip allocation.
Learn more about yetipay’s tipping features
If you’re looking to improve other areas of your bar, you might also find our guide on digital billing solutions helpful.
TiPJAR – Best for Digital and Cashless Tipping
If your bar has gone cashless, TiPJAR provides a simple way for customers to tip via QR codes, Apple Pay, and Google Pay. Unlike traditional tipping methods, TiPJAR ensures tips go directly to staff rather than being processed through payroll.
• Fully independent tipping platform—bar owners don’t handle funds.
• Staff receive tips instantly without deductions.
• Great for bars that pool tips or split gratuities across shifts.
If you want a cashless, transparent way for staff to collect tips, TiPJAR is a great option.
Square POS – Best for Built-in Tip Processing
If you want a simple tipping solution within your point-of-sale system, Square offers a straightforward built-in feature.
• Customers can add a tip directly at checkout with pre-set percentage options.
• Tips are automatically tracked and recorded for reporting and payroll.
• A great choice for smaller bars needing a no-fuss solution.
Square works well for bars that want a basic, reliable way to manage card-based tips.
If tracking finances is a priority, our article on key performance metrics for bars and restaurants explains how to measure success.
Toast POS – Best for Managing High-Volume Tips
For busy bars where multiple staff members share tips, Toast provides advanced tipping features designed to automate and simplify distribution.
• Supports custom tip pooling based on hours, sales, or role.
• Ensures fair and legal tip allocation.
• Integrates with payroll to reduce admin work.
For bars with a large team and high transaction volume, Toast ensures tips are fairly managed and automatically processed.
If your bar struggles with service efficiency, you might also benefit from our guide on queue management tools to reduce wait times.
How to Choose the Right Tip Management System
The best tipping system depends on how your bar operates:
• If you want seamless card payment tipping, yetipay is the easiest option.
• If you prefer a cashless, independent tip collection, TiPJAR allows direct tipping to staff.
• If you need a basic in-POS tipping system, Square offers a built-in solution.
• If you run a busy venue with pooled tips, Toast automates the process.
No matter which system you choose, a clear and transparent tipping process is essential to keeping staff happy and ensuring compliance with UK regulations.
Learn more about improving bar payments with yetipay.
For more ways to optimise your bar’s operations, check out:
• The best queue management tools for bars and restaurants
