This article will show you how staff can route their PhorestTips to their own bank account through PhorestPay.
Latest Version of Phorest Required
Phorest Version 8.4.59 or above is required. Click here to download the latest version of Phorest.
Feature Launch in Progress
This feature is currently being released to Phorest clients in Ireland and the UK who are using a PhorestPay Card Terminal and are on the latest version of Phorest (Phorest 10).
We will let you know as soon as the feature is available to you. It will be available in other regions soon.
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If you prefer interactive learning to reading, check out our PhorestTips course, available on Phorest Academy. Click here if you are in Ireland |
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In this Article
By default, any tips taken through your PhorestPay Card Terminal will be automatically routed directly to a staff member's bank account, provided they have activated their PhorestTips account.
Activating a PhorestTips Account (Powered by Stripe)
First, go to Manager > PhorestPay > Settings, and enable PhorestTips.
Once enabled, staff members can then begin activating their PhorestTips accounts.
To activate their PhorestTips account, staff members must log in to PhorestGo and select PhorestTips from the sidebar menu.
For security and privacy reasons, the PhorestTips button will not appear if you use an iPad or Android tablet with PINs enabled. In this situation, you must use a smartphone to activate your PhorestTips account.
If you see a Red Lock beside PhorestTips, you do not have access. You can grant access under Manager > Access & License Keys > Select the staff members access level > Phorest Go (Mobile) > PhorestTips.
Next, select Add bank details to provide the information needed to activate their PhorestTips account.
Once the account is activated, any tips received through the PhorestPay Card Terminal will be automatically routed to the staff member's bank account, which they provided information for during the Add bank details step.
If a staff member ever needs to update their bank details, they can do so in PhorestGo by going to PhoresTips > Account settings.
After the account has been activated, the PhorestTips screen will display an Active badge in the top-right corner.
Staff members may also be prompted to verify their account later after activation.
Self Employed Staff Members
PhorestTips is designed for staff members who are directly employed.
If you are self-employed, check out this guide to learn how to route PhorestPay funds directly to your bank account.
How Does it Work?
When processing a payment on your PhorestPay Card Terminal, the terminal will prompt the client to leave a tip for the staff member.
If multiple staff are involved in the appointment, the terminal will display a separate tip prompt for each staff member.
5% Fee in Tip
Your client will also be asked if they want to cover the 5% transaction fee in the tip.
Research suggests that over 95% of clients choose to cover this fee.
If your client chooses to cover the fee, it will be added to their total bill.
Example: A client tips $5 on an appointment. A 5% fee ($0.25) is added on. Their total is $5 + $0.25 + the price of their appointment.
If the client chooses not to cover the fee, the 5% will be deducted from the tip total before the remainder of the tip is paid to the staff member's bank account.
Tip Notification
When a client pays a tip, the staff member will receive a push notification on their phone.
Staff members who have their own self-employed PhorestPay accounts will not receive this notification.
Tapping the notification will open PhorestGo and display the full details of the tip received.
When Do Tips Reach my Bank Account?
PhorestTips payouts are processed and released the next working day. Depending on the processing times of Stripe and your bank, this payout will reach your bank at any stage during that day, typically before 4 PM. Click here for more information on the payout schedule.
Viewing Tips, Payouts and Reports
Tips received through PhorestTips will not appear in your regular Phorest reports. Staff members who receive direct tips have their own separate reporting, which is detailed below.
Each staff member can view details of the tips they have received through the Tips, Payouts and Reports options on the PhorestTips screen in PhorestGo.
Tips
The Tips screen will display a list of the tips that the staff member has received.
Payouts
The Payouts screen will display a list of tips that have been paid out to their bank account.
A detailed breakdown of each payout can be downloaded from this screen and opened using a spreadsheet app (like Google Sheets, which can be downloaded from your phone's app store).
Reports
With Reports, staff members have access to an interactive dashboard where they can view their tips received across a specified date range and drill into each report on the dashboard for a further breakdown of each report.
Refunding a PhorestTip
If you want to process a refund or partial refund for a received tip, go to Manager > Sales > Find and click on the original sale.
Under the Payment Details section, you will see the total Tip amount(s). Take note of the tip amount, as you must enter it later.
Click Refund.
If you are refunding the tip only, click the 'x' beside other sale items to remove them from the refund.
Click Pay > Add a tip > Enter the name of the staff member who originally received the tip.
Enter a negative amount into the tip amount field by pressing the - (minus) symbol on your keyboard first, then enter the refund amount > Confirm tip.
Finally, select the payment method you'd like to use for the refund and click Complete payment to complete the refund.
Voiding a sale that included a tip will also result in a refund of the tip automatically, along with any other payments associated with that sale.
If you are refunding back to the original card, depending on the bank, refunds can take 5-10 business days to reach the client's account. PhorestTips refunds are debited from your PhorestTips (Stripe) account.
FAQs
Can a PhorestTips account be activated before a staff member receives a tip?
Yes, staff can activate their PhorestTips account as soon as they see the PhorestTips option in the PhorestGo menu.
Can I customize the default tip amount being displayed
The default tip amounts can be configured. Click here to see how. Each staff member cannot have individual customized tip settings.
What happens to tips if a PhorestTips account isn't activated?
If a staff member receives tips before activating their PhorestTips account, the tips will be held in Stripe up to the value of $500/£500/€500. These funds will be released to the staff member automatically after they have activated their PhorestTips account.
If the $500/£500/€500 limit is exceeded and the staff member has not activated their PhorestTips account, the PhorestPay Card Terminal will no longer display a tip prompt for that staff member, but it will still appear for other staff.
If the staff member has tips in holding and does not activate their PhorestTips account, those tips will eventually be refunded to the original cardholder.
Some of my staff members are under 18. Can they still create a PhorestTips account?
For individuals under 18 years old to have a Stripe account, they will need the assistance of a parent or legal guardian. When setting up their PhorestTips account:
1. The Stripe account should be registered with the details of the parent/legal guardian as the account representative. Additionally, they will need to provide the parent/legal guardian's photo ID at a later stage.
2. Staff members can connect their own bank account details to receive payouts directly in their own account.
If there are any tax obligations related to tips in your region, the staff member, not their parent/legal guardian, is responsible for paying the taxes.
My team does not use PhorestGo. How can I set them up and manage their access?
To create a login for a staff member, go to Manager > Staff Members > Click on the staff member's name to open their profile > Enter an Email and Password > Click Save. After this, the staff member will be able to log into PhorestGo. For more information about access permissions in PhorestGo, please see:
- How do I set up/change a staff member's access in PhorestGo?
- How do I hide client contact details on PhorestGo?
If you want staff to have access to PhorestTips but don't want them to be able to see appointments or client details on their phone, disable access to everything except PhorestTips.
Will the PhorestPay Card Terminal still prompt the client for a tip even when using a stored card for payment?
Yes, you can still prompt your client for a tip even when using Cardless Checkout. However, you need to enable a setting to do this. Click here for more information.
Stored card tipping with PhorestTips is not currently supported on PhorestGo.
If a client pays using a method other than a card or stored card, will the PhorestPay Terminal prompt for a tip?
No, in this scenario, the PhorestPay Terminal will not prompt for a tip.
I am in Ireland or the UK and want to learn about tipping compliance in my region.
Phorest has created a website to help employers and employees understand tipping laws and compliance in their region.
If you are in Ireland, click here to visit our Salon Tipping Compliance site, or you can find information on the Revenue.ie website here.
If you are in the UK, click here to visit our Salon Tipping Compliance site, or you can find information on the Gov.uk website here.
What happens if a client processes a Chargeback on a transaction that included a Tip?
If a client disputes a transaction and requests a refund from their bank or credit card issuer, and the dispute is resolved in the client's favor, the refund will be processed through the business's PhorestPay account, not through the staff member's individual PhorestTips account.
We encourage employers and employees to establish a clear process for managing chargebacks.
Click here for a full guide on Chargeback Management with PhorestPay.
We have multiple locations. Will staff members need to activate their PhorestTips account in each location?
Staff will only need to activate their PhorestTips account once, as long as all your locations are linked together in Phorest. If your locations are separate from each other in Phorest, staff will need to create a PhorestTips account for each location.
Can the Card Terminal prompt for tips on Service sales only?
Yes, disabling the Include Retail Sales in Tips option in your tipping settings will ensure that tips are only prompted for service amounts.
Click here for more information on how to change your tipping settings.