What Does “Tips and Signature” Mean in a POS Setup?
In POS systems, “tips and signature” refers to the part of the checkout process where the customer selects a tip amount and signs directly on the screen to complete their payment.
This digital flow replaces traditional paper receipts and simplifies how tips are added during card transactions.
How It Works in Practice
When the transaction reaches the payment screen, the customer is shown tipping options, usually preset percentages like 15%, 20%, or 25%, along with a custom tip field. Once they make a selection (or skip the tip entirely), the system prompts them to sign on the iPad. After signing, they can choose how they’d like to receive a receipt – printed, emailed, or sent by text.
This process is common in service-focused businesses like cafés, salons, and counter-service restaurants, where tipping is part of the customer routine. It’s also widely used in mobile payment setups at events or pop-ups, where printed receipts aren’t always practical.
Some systems include a post-payment tip adjustment option. This lets staff add a tip after the card is authorized, typically within a set time window. It’s useful when tips are written on a printed receipt and entered manually later, though this is becoming less common with digital-first setups.
Why It Affects More Than Just Checkout
The tips and signature flow have a direct impact on both staff earnings and customer experience. A clear, user-friendly interface makes it easier for customers to tip without pressure. In fact, many businesses see a steady increase in average tips when switching to iPad POS systems, likely due to the seamless prompts and suggested amounts displayed during payment.
For staff, digital tipping means fewer missed tips, better tracking, and faster payouts. For business owners, it provides cleaner reporting and reduces errors often tied to manual tip entry.
What to Keep in Mind
Adjust tip suggestions based on your typical transaction size and service model
- Keep the interface clear – cluttered screens can confuse customers and slow down checkout
- Make sure staff understand how to handle tip adjustments, if your system allows it
- Review tip reports regularly to track performance and payout accuracy
The tips and signature feature isn’t just a formality, it shapes how customers interact with your business at the point of payment. A smooth, intuitive process encourages tipping, speeds up checkout, and creates a more modern, professional experience for everyone involved.
