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DipJar CEO Ryder Kessler on how consumers can leave a tip with their debit or credit card the next time they get a cup of coffee.
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-- -- smaller part of that we sometimes get the tip.
Cover short on cash that decline at the tip -- inspired one small business owner devise a new product to fix it writer -- -- -- brand new -- -- -- using your credit card and he joins me now thanks for being with us -- thanks so -- this baby is.
And you go -- your coffee line and did pay like you do and then you'd go to put that baby in the tip jar.
Now how -- gone so far -- -- in this thing in three stores.
Yes so where in resource is part of a ten store pilot and it's going great customers love it they can and try to ease the pain with plastic but they -- -- -- their favorite employees.
Employees love that they're collecting extra money that they haven't been getting because more and more people are not using cash and so they're not -- it all.
And yeah -- working out great for everyone we're getting requests from all over the country for but I do want to turn their source now you can -- to design -- baby to be bigger than these two because he could have just a little card size thing but you liked the idea where we actually see that -- in -- threaten absolutely it feels and looks like it -- -- -- -- safe and secure but it's still incredibly simple to one step process just like dot dropping a dollar -- into a -- tip -- You dip your Cardin and even dollar tip for your favorite place -- and you've applied for patents on this -- because after that Samsung.
IPad apple ruling that seems like anyone does anything in the shape of this going to be in trouble.
We have absolutely applied for patents on the -- device and trademarks and everything we have to do to protect our product.
Now let's go after a couple of obstacles here -- you know.
You need conflict to make -- started to -- of first obstacle.
Can't Verisign or some maker of the card swipe machines simply rip you off by -- that stuff -- it into their thing -- -- swipe once the pay -- another time for -- -- can't you just.
Obviate it.
I think we're in a really great place we just doing very simple were on the counter -- separate point of from the point of sale system.
If you remember Starbucks had a huge class action lawsuit about how they were collecting and dividing up -- retailers don't want to be involved in -- collection and disbursement and so they don't want to be part of there plan itself system they like that we take care of everything.
Once we're on the counter they have to do nothing at all and we collect and disburse the money -- -- -- some place.
That's quite interesting that retailers don't want -- be burdened with doing this themselves and temple and secondly another conflict idea.
Here is that aren't you having writer an awful lot of human faith in people's generosity just -- a lot of people simply want to avoid tipping.
I don't think so I think people want to tip and that's what we've seen from our pilot people who pay with plastic they still want to tip and that's part of the reason that cast -- used to be very high and these kind of service employees would collect for five dollars per person per hour tax tips.
That's now down to about a dollar dollar fifty but there's this huge gap -- people who are paying with plastic but still want to -- While you're awfully good several then lastly I got to California people coming.
Once -- put that baby in there there is now on electronic transaction electronic record of that tip.
Lot of players don't pay taxes on all the tips they collect but when they get electronically they better is now there's a record right.
So that's a great question.
They -- -- that they collect are subject to tax and our tips are exactly the same.
The money goes to -- -- -- and it's their responsibility to report their income but we think it's worth it because we're putting so much extra money in their pocket that they didn't have yesterday.
Tax reporting -- a small price to pay for taking home hundreds of extra dollars a year yeah.
I think so even -- -- reduced my take by 25%.
OK well pretty good job certain prosecuted the case well thank you some observers -- -- -- -- writer Kessler.
