Harvey Jones looks at the history of credit/debit cards in restaurants, tells us why you should always tip in cash and exposes some popular card scams.
If you or I were handed a restaurant bill, only to discover we'd left our wallet at home, we'd be stuck doing the dishes... or worse. In 1949, Frank McNamara was a bit more creative. After entertaining a group of dinner guests in a New York restaurant, Frank realised his wallet was in another suit. Luckily, the restaurant owner knew him, sparing his blushes, and all those dirty dishes.
However, he didn't just dine out on the story, he put it to work, inventing the Diners Club Card, the world's first charge card proving the holder's identity and ability to pay. Today, we buy more food on plastic than ever before. We've doubled our card spending in restaurants and cafes over the past decade, according to The Payments Council, spending £58 billion on eating out every year.
That won't do nicely
Although most establishments accept Visa and MasterCard, many still decline American Express, as Hollywood megastar Tom Cruise discovered after nipping out for a curry last year. The Veer Dhara in St Albans turned down his Amex, but thankfully one of his party managed to scrape together enough cash, so it all ended in smiles and complimentary After Eight mints.
Sadly, this didn't inspire Tom Cruise to launch his own Curry Card, although Veer Dhara was more pro-active, and now accepts Amex, as do McDonald's, Pizza Express, Ask, Zizzi, Wagamama and Strada.
Ironically, Diners Club is also becoming obsolete in restaurant land.
Smaller restaurants often stick to Visa and MasterCard because Amex and Diners Club have much higher merchant charges, says my contact at luxury hotel chain Kempinski. "These can legally be passed onto the guest, but it's a touchy subject," they told me. "Restaurants and hotels don't want to annoy big spenders by slapping an extra charge onto their Amex Platinum and Black Cards. Amex has such status that high-end restaurants can't afford to refuse it."
For admin reasons, it is much easier for smaller eateries to stick to Visa and MasterCard. Some don't accept cards at all. As you’d expect, my local greasy spoon only takes cash.
Where do you add the tip?
The big question when paying with plastic is whether to add the tip to the card bill. I stick to shrapnel, where possible, for two reasons. First, the restaurant has to pay a credit card charge on the tip, which it doesn't if you pay by cash. Then there's always the worry that staff won't see the money. If you pay by cash, they should get their share straight after their shift.
Watch out for restaurants that add a 10% or 12.5% service charge to your bill, then neglect to mention this fact when bringing the card scanner to your table, tricking you into paying a double tip. That always leaves a nasty taste in the mouth. If you're unhappy with the service, or think the charge is too high, ask for it to be removed, and decide how much you really think the service was worth.
Karate chop suey
One thing I've always wondered is, if your card is refused, does the restaurateur cut it up in front of your very eyes, like in the movies? I asked Shamil and Kavi Thakrar, co-owners of Dishoom, two London restaurants based on traditional Bombay cafes. Shamil replied: "In fact, it's worse. We call the team over, shout 'Declined card!', then throw the card on the floor, stamp on it before throwing it in the tandoor."
I suspect he's joking, but it is worth checking your card is valid, just in case. I witnessed a violent restaurant credit card dispute back in the 1980s, in the legendarily rude cut-price Chinese carnel house Wong Kei in Wardour Street, London.
Staff leapt over tables and hurtled out of the kitchen to serve some brutal kung fu moves on two diners who were slow to stick their cards in the reader, watched by hundreds of shocked diners, none of whom lifted a chopstick to help. Maybe Wong Kei is a more laid back place these days. I don't know, I've never dared go back.
Mobile meals
Carefully check your card bill, both at the table, and on your statement later, says Chris Parkman, a chef friend of mine. "Waiting staff put through the wrong amount on cards all the time. It's easy to end up paying £354.30 for a £35.43 meal. Oh, and watch out for fraud. One girl I worked with was sacked for double-charging cards, then pocketing cash from the second swipe." Naughty.
It's rude to use your mobile phone at the dinner table, but we may all be doing it in future, to pay the bill. Nine out of 10 current accounts should offer mobile payment services from next spring, as part of an industry-wide plan. Sending a security-protected payment will be as easy as texting, with your mobile phone number acting as proxy for your sort code and account number. Just make sure you don't dial the wrong number.
Forgetting his wallet made Frank McNamara rich, but he never really solved the problem of leaving your wallet at home. Whether you plan to pay by cheque, cash, card or phone, don't leave home without it.
How do you pay when you eat out? And how do you tip? Let us know in the Comments box below.
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