Pay by Bank: How Tips Work

Pay by Bank supports tipping at checkout. This article covers how tips flow from the customer's payment to your bank account, and the common approaches stores use to distribute tips to budtenders. For instructions on how to enable tipping, see the StoreOps Enabling section.

How tips are collected and deposited

Tips are included in your daily deposit

When a customer adds a tip at checkout, it is added to the order total and processed as part of the Pay by Bank transaction. Tips are then included in your regular next-day deposit — there is no separate payout for tips.

Your deposit reflects the full transaction amount including tips, minus Dutchie's processing fee. Use the reports below to see tip totals broken out from the rest of your revenue.

Where to find tip data

Tip reporting

Tips appear in three places in Back Office reporting:

Report	What it shows	Where to find it
Closing Report	Total tips across all payment methods for the day, under Income Summary → Total Tips	Reports → Closing Report
Sales Report	Tips column broken out by payment method — useful for isolating Pay by Bank tips specifically	Reports → Sales Report
Tip Summary by Employee	Tips per budtender for a given date range — use this to calculate individual distributions	Reports → Employee → Tip Summary by Employee
Tip Summary by Terminal	Tips broken out by register/terminal for a given date range	Reports → Employee → Tip Summary by Terminal

Distributing tips to budtenders

How stores handle tip distribution

How tips are distributed to your team is entirely determined by your store's policies and any applicable local laws and regulations. Dutchie does not automatically distribute tips to individual employees — that step happens outside of the platform.

Two approaches are common among Dutchie stores:

Payroll inclusion

Tips are totaled from the Tip Summary by Employee report and added to each budtender's regular payroll. This is the most common approach for stores that process payroll weekly or bi-weekly and keeps tip income documented as part of wages.

End-of-day cash payout

Tips are totaled at the end of each shift — either per budtender or as a pooled amount split across the team — and paid out in cash at the end of the day. Stores using this approach typically run the Tip Summary by Employee report nightly. If tip payouts are taken from the cash drawer, make sure to account for this when reconciling your drawer at close so your cash totals balance correctly.

Note on tip totals: The Closing Report's Total Tips figure includes tips from integrated payment methods only — cash and other non-integrated payment types are not included. If more than one integrated method is enabled (for example, Pay by Bank and another integrated method), their tips are combined into a single total. To see tips broken out by individual payment method, use the Sales Report, which has a tips column per payment type.

Check your local regulations. Tip pooling rules, required disclosures, and wage treatment for tips vary by state and municipality. Consult your legal or HR advisor to confirm your distribution method complies with applicable laws before implementing.