Frequently Asked Questions
- How do digital tip payouts work?
- Digital tip payouts allow employers to transfer employees’ tips electronically instead of in cash. Employers can use the Fuego digital platform or app 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 compliant with tax and labor regulations.
- How does Fuego’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. Fuego 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.
- Can I run tips through payroll instead of paying them out daily?
- Yes, employers can choose to turn off tip payouts and instead can pay out tips to their employees directly through payroll each pay period via earned wage access.
¹Central Bank of Kansas City does not administer nor is liable for on-demand pay/wage draws or tip pay out.
The Fuego Visa Card is issued by Central Bank of Kansas City, Member FDIC, pursuant to a license from Visa U.S.A., Inc. and may be used everywhere Visa debit cards are accepted. Certain fees, terms, and conditions are associated with the approval, maintenance, and use of the Card. You should consult your Cardholder Agreement and the Fee Schedule at www.getfuego.com/legal. If you have any questions regarding the Card or such fees, terms, and conditions, you can contact us toll-free 24/7/365 at 1-855-715-8518.