Tip Payout
Simplify tip distribution with automated, digital payouts.
Say goodbye to cash and save on collection, transportation, and insurance costs with digital tip payouts built into HotSchedules.
- Save time on tip distribution
- Eliminate your restaurant’s dependency on cash
- Reduce security costs, theft risks, and make commutes safer
Real-time access through the Fuego app.*
Experience the convenience of digital tip payouts, delivered through the Fuego app — streamlining your payout process and giving tipped employees real-time flexibility in how they receive their pay.
*Standard data rates from your wireless service provider may apply.
It’s completely automated and doesn’t require any manual input from our managers at 3:00 in the morning when they’re exhausted. So far it’s been fulfilling all the needs we had.
Nate Whatley
Director of Technology
On Deck Concepts
Reduce cash payouts
Eliminate your dependency on cash.
Reduce expenses associated with cash handling — collection, bank runs, transportation, and insurance — with digital tip payouts.
Efficient tip management
Manage cashless tipping easier than ever before.
Say goodbye to manual calculations, spreadsheets, and paperwork, and embrace the simplicity of digital payouts for smoother operations.
Tip data management
Designed to work hand-in-hand with your existing restaurant software.
We leverage data already available across 30+ major POS system to deliver tip pool calculations directly into HotSchedules. No matter where your tips are stored, we can support your needs.
Save on labor costs
No more time-consuming cash distributions.
Remove the burden of cash tip handling for managers, allowing them to focus on driving business growth – saving valuable labor hours previously spent counting and distributing tips.
Improve your restaurant’s cash flow
A more efficient tip handling process.
Speed up your cash flow cycle and ensure faster reimbursement and better financial management for your business with Tip Payout.
Prioritize employee safety
Carrying cash places your employees at risk.
Eliminate excess cash in stores, reducing security costs and theft risks with digital tip payouts. Plus, no more cash pickups for managers and safer commutes for employees.
Save on labor costs
No more time-consuming cash distributions.
Remove the burden of cash tip handling for managers, allowing them to focus on driving business growth – saving valuable labor hours previously spent counting and distributing tips.
Pairs with Tip Pooling.
Frequently Asked Questions
What is Fourth’s tip payout software?
Fourth’s tip payout software is a digital tip distribution platform that replaces end-of-shift cash payouts with automated electronic transfers. Tip amounts are calculated using data already in the operator’s POS system, and employees receive their tips digitally — to a bank account, debit card, or the Fuego Visa® Card — eliminating the need for managers to handle, count, or distribute cash.
What is the Fuego Visa® Card?
The Fuego Visa® Card is a debit card issued by Central Bank of Kansas City (Member FDIC) under a Visa license that employees can use to receive digital tip payouts at zero cost. Accepted anywhere Visa debit cards are accepted — making digital tips accessible even for employees without a traditional bank account.
How do digital tip payouts work?
Digital tip payouts allow employers to transfer employees’ tips electronically instead of in cash. Employers can use Fourth’s digital platform or app (Fuego) to input the tip amounts, which are then directly deposited into employees’ accounts.
How does digital tip payout help with record-keeping and compliance?
Tip payouts simplify record-keeping by automatically generating digital receipts and transaction logs for every payment. This helps employers stay organized and keep pace with evolving wage regulations.How does Fourth’s payment processing compare to traditional methods in terms of speed and cash flow
How does Fourth’s payment processing compare to traditional methods in terms of speed and cash flow for businesses paying out tips to employees?
On average, it takes three days for payment networks like Visa to settle card payments and reimburse a business that pays out tips in cash the night that they’re earned by employees, seriously affecting your cash flow process. Fourth pays out only the known amount and you get it back the next day, halving your funding time.
What are the fees associated with digital tip payouts?
There’s no implementation fee for the employer, no subscription fee, and zero cost tip payments. Employees can transfer tips for $0.50 for ACH (2–3 days), $1 for same day ACH, $2 to a card account (within minutes), and tip payments to the Fuego Visa® Card are zero cost. Employers can choose if/when they want to pay the cost to transfer tips on behalf of the employee, even if just for the short-term.
Does tip payout impact my current payroll process?
Tips paid out are recovered via ACH Debit daily and a breakdown is available to finance for reconciliation. Fuego provides a pay period tip report file that the company’s payroll administrator uploads to the payroll provider containing paid and unpaid tips. All in all, payroll administrators add just one step to their existing payroll process.
Is the tip payout process fully automated or does it require manager input?
Fully automated. As On Deck Concepts’ Director of Technology put it: it requires no manual input from managers — including at 3:00 in the morning when managers are exhausted. Fuego pulls tip data from the POS, calculates distributions, and processes transfers without manual data entry, spreadsheets, or cash counting at any point.
What are the hidden costs of paying tips in cash?
Cash tip handling carries a range of direct and indirect costs: bank runs and cash transportation, insurance for cash on premises, the labor cost of managers counting and distributing tips late at night, security measures to protect cash in the store, and theft risk — both of the cash itself and from employees being targeted while commuting home after receiving tips. Digital tip payouts eliminate all of these.
Ready to get cash out of your tip process?
See how Fourth delivers tips digitally — connected to pooling and payroll in one reliable, auditable process.
