Hey NOVA. We went to hear a local band play down in Tysons Corner. The concert was moved to their indoor venue restaurant and bar. They use one of those handheld credit card machines to process payment and tip amount.

I was reviewing my receipt this morning and realized that they calculate tip amount on subtotal plus taxes. Typically tips are calculated on the subtotal before any taxes or fees are added.

This seems petty until you realize that a restaurant that pulls in $10,000 a night average revenue (which is not out of the question in NOVA) will calculate an extra $43,800 a year in tips (based on an average of a 20% tip) by calculating the tip after taxes and fees have been added.

I spoke to a friend who owns a restaurant in the area and her response was that this was “low-key fraud”.

What are your thoughts?