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Service charges explained

Is a service charge the same as a tip?

Short answer: not necessarily. A service charge is a fee added by the business; a tip is generally a separate discretionary payment. The exact label, receipt language, and local rules matter, so this guide explains what to look for without pretending every charge works the same way.

A quick, plain-English guide · about 4 minutes

01

Read the label and the receipt

Look for whether the amount is called a service charge, automatic gratuity, fee, or tip; whether it is already included in the total; and whether the payment screen then asks for another amount.

Tip on service charge reports →Tip-on-tax reports →

02

A second tip request is worth documenting

If a screen asks for a tip after an existing charge, note the subtotal, fee, suggested amounts, and source. A readable receipt or original post is especially helpful here.

Search service-charge reports →Submit a report →

03

This is not legal advice

The tracker documents checkout experiences and sources. For a question about a specific charge or local rule, consult the relevant regulator or a qualified adviser.

Policy map →Methodology →

04

Automatic gratuity can still be a separate question

Some receipts use “automatic gratuity” rather than “service charge.” The wording and treatment can vary, so the strongest reports preserve the exact label instead of assuming the two are interchangeable.

Automatic gratuity guide →Glossary: automatic gratuity →

05

How to check the calculation

Compare the subtotal, tax, listed charge, tip suggestions, and final total. If the screen makes the math unclear, a full receipt and a dated source help the reader reproduce what happened.

Tip-on-tax guide →Submit evidence →