Absolutely! You dip your credit or debit card into the DipJar and pull it out. That’s it. You’ve given the fixed tip amount emblazoned on the front of the DipJar to the appreciative workers behind the counter.

DipJar is for anyone who wants to easily collect electronic gratuities — e.g. tips in coffee shops, contributions to musicians, donations to charity.

Cash isn’t going away, but there’s a staggering move towards use of debit and credit cards for everyday purchases. As counter transactions switch to plastic, customers no longer have a way to leave a tip. (In 2011, 66% of point-of-sale transactions happened with some kind of magnetic stripe card, compared to 27% for cash.) We want to give everyone the opportunity to reward their favorite employees while still enjoying the ease of paying with plastic.

DipJar tip amounts are preset — $1 for most locations — so you’ll always know how much you’re tipping when you dip your debit or credit card. All DipJar tips will appear on your bill as charges to DipJar Inc.

Retailers pay a small, one-time cost for DipJar purchase and placement. Tip-earning employees pay DipJar 8¢ of every dollar for processing. This payment supports the DipJar system — connectivity, counting and calculating of employee earnings, and disbursement of earned funds.

The main additional costs associated with getting the electronic tips to employees are the credit and debit card fees charged by card issuers. We can’t control those, but we are doing everything possible to minimize them.

We know that the faster we grow, the faster we’ll be able to get more favorable rates. Even as we grow, DipJars will bring significant new intake that otherwise would be impossible to collect.

Our research suggests that people who pay with cash tip with cash, while people who pay with plastic don’t tip at all. We want to capture all the tips those people would be leaving if there were an easy way to tip electronically.

All you have to do to set up a DipJar in your store is (1) register it, (2) plug it in, and (3) place it on the counter. The whole process takes less than 5 minutes.

While it’s not required, we also ask that managers or owners review our disbursement schedules, which show employees’ hours and earned tips, before we send out payments. And if something isn’t working, we’d love for you to contact us to get everything sorted out.

Yes. DipJars encrypt credit card information immediately upon card dip and transmit it securely to our servers. Data is not stored on the DipJar beyond the time it takes to transmit. The DipJar system also has many internal checks against fraud — for example, we are alerted of suspicious repeated dipping.

DipJar uses 3G connectivity to communicate with our servers. Besides plugging the DipJar into a power outlet, no other wiring or physical set-up is necessary.

We are excited about equipping DipJar to handle all forms of electronic payment. Right now our DipJars only accept credit and debit cards, but, as payment technologies advance, we’ll advance right along with them.