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Tipping at checkout

When the tip prompt shows up, how Stripe processes it, and how tips show up in your reports and 1099.

Updated · May 20, 2026

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If you turn on tipping in Settings, ApptOnly adds a tip prompt when a client pays. The tip is processed alongside the service charge through Stripe and lands in your bank account with the rest.

When the tip prompt appears

The prompt appears on the in-app checkout screen, after the client has picked a service and at the point where they confirm payment. Default amounts are 15%, 18%, 20%, and a custom field. You can adjust the preset percentages in Settings, Payments.

The prompt does not appear when a client books without paying (payment-optional mode). For booking flows where the client only pays a deposit, the tip prompt is held until the balance is collected at the appointment.

How Stripe processes it

The tip is added to the service charge as a single line on the same Stripe transaction. Stripe's 2.9% plus 30 cents fee applies to the combined total. There is no special tip-only transaction; the receipt the client sees breaks out the service price and the tip clearly.

ApptOnly tracks the tip separately on your end so reports can show it as its own line.

Where tips show up in your reports

In Finances, tips are tracked separately from service revenue:

  • The Revenue Reality Check shows your posted service revenue and your tips received on different lines, so a high-tip period does not muddy the picture of how your pricing is performing.
  • The Transactions list shows the tip amount inside each payment row.
  • Your Stripe dashboard shows the combined total per transaction (Stripe does not separate tip from service charge in their reports).

Tips and taxes

Tips are taxable income to you, just like service revenue. They flow into the same Schedule C as your other earnings. They are not reported separately on a 1099-K from Stripe; the 1099 shows your total processed volume.

If you have employees or contractors, tip allocation gets more complicated. ApptOnly's tipping is built for a solo practice where the tip lands with you. If you ever bring on a contractor and want to share tips, you will need a separate process to track and pay out their share; ApptOnly does not do that today.

When tipping is the right call

  • Service categories where tipping is the cultural norm (massage, hair, nails, barbering).
  • High-touch services where clients often want a way to show appreciation.

When it is not: lower-touch services where the prompt feels awkward (consultations, classes), or markets where tipping is unusual and the prompt would read as pushy.

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