My biggest qualm is when tax is included into the pre-defined tip denominations because it’s absurd but also messes with my mental math.
Edit word
Those POS devices don't prompt for a tip by default. The amounts they offer for the denominations are configurable as well. Companies offering to add a tip to picking up your coffee chose to do so.
Why is this desirable for employers? One: It doesn't cost them anything and improves employee retention (or: they don't have to pay their employees as much). Two: They get control over that tip money, and can distribute it (or not) how they like. Yes, I've heard about this too, where tip money is equally distributed among all shift employees, or as well as a disciplinary step employers have kept all the tip money for that day. Three: If it's a self-owned business, they may get free money from someone who feels pressured to tip. Yes, some of that may be legal, but it goes on anyways.
I've had numerous instances in Europe, particularly in Ireland and the UK, of shops, grocers, cafes, etc with touchscreen POS devices that ask customers for a tip percentage with every sale, only for the staff to quickly reach over on every sale and press "no tip". It seems like a rather inefficient way of not having tips. I don't know, however, whether it comes from owners trying to establish tipping and staff disagreeing, or an inability, administratively or technically, to figure out the configuration.
It's clearly configurable if you look on the websites of Square, Stripe etc.
In Denmark I've twice had waiters reach over once they saw my Danish credit card and press "no". "Sorry, I thought you were tourists/American as you were speaking English."
My favorite is when they have the screen set-up so the largest tip is furthest to the left where you'd expect the smallest to be.
we should actually pressure the POS services as well as the card networks to cut this practice
it'll probably be far more effective too than trying to talk to service industry workers given the conflict of interest