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Americans have long grumbled about tipping culture — but now digital checkout screens are turning that frustration into full-blown financial disasters.
Sometimes, the issue isn’t just pressure to tip — it’s how easy it is to make a costly mistake. Nearly 89% of Americans believe the tipping culture has spiraled out of control, and one in five Americans say they’ve accidentally tipped more than intended on digital checkout screens, according to a DailyMail poll.
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That’s precisely what happened to Linda Mathiesen. While buying CBD pain relief gel for her bad shoulder at a store in San Bruno, California, she accidentally tipped $5,000 on a $129.28 purchase.
Mathiesen said she meant to leave a $5 tip, but the payment terminal didn’t show a decimal point, so when she entered “5000,” the system took it — literally.
At first, the clerk at San Bruno Exotic told her the charge couldn’t be reversed. Then the story shifted — he claimed the shop never received the money. But Mathiesen’s bank statement showed otherwise.
“I’m just livid because I’m like I’m not going to pay $5,000 for something I never intended to happen,” Mathiesen told ABC 7 News.
A tipping error gone wrong
For Mathiesen, a $5,000 tipping mistake wasn’t just a moment of panic — it became a financial crisis.
After Mathiesen noticed the charge, she contacted Wells Fargo within five minutes. But despite the bank’s promise of “zero liability protection” for promptly reported fraud, she says little help was offered.
“I busted out in tears,” she told ABC 7 News. “My son is graduating from college next week … and I can’t even buy anything for him because I have $5,000 outstanding … now it’s $5,500!”
According to Wells Fargo’s website, its built-in protections mean customers won’t be held responsible for unauthorized transactions if reported quickly.
It took almost a year, plus a follow-up call from ABC News’ 7 On Your Side, for Wells Fargo to promise to refund the transaction, including interest.
As a special education teacher living on a fixed income, Mathiesen didn’t have the cushion to absorb the hit. With no emergency savings to fall back on, the charge was devastating.
Although experts recommend saving three to six months’ worth of expenses, 42% of Americans report having no emergency fund at all. Among women, the figure is even higher — 49% lack emergency savings, compared to 36% of men, according to a U.S. News survey. What’s more, the average savings rate for Americans in June was just 4.5% of personal disposable income, according to the Bureau of Economic Analysis.
To get started, a high-yield savings fund, such as a Wealthfront Cash Account, can be a great place to grow your emergency savings, offering both competitive interest rates and easy access when you need funds.
With a Wealthfront Cash account, you could earn up to 4.25% APY on your uninvested cash for your first three months (0.50% APY boost on top of the 3.75% base variable APY) provided by program banks. That’s over ten times the national deposit savings rate, according to the FDIC’s September report.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, you can ensure your funds remain accessible at all times. Plus, Wealthfront Cash account balances of up to $16 million are insured by the FDIC through program banks.
Remember, accidents and mistakes happen — but with a solid emergency fund, they don’t have to become financial disasters.
Read more: How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
It’s not as rare as you’d think
Digital checkout screens may speed things up, but one wrong tap can turn a routine purchase into a nightmare.
Mathiesen isn’t alone in her tipping trouble. It happened to Vera Conner as well. The Georgia woman was ordering her usual No. 4 Italian sandwich at Subway — priced at $7.54 — when she accidentally left a $7,112.98 tip.
Conner said she was entering her phone number for loyalty points when the screen suddenly flipped to the tipping prompt. Before she realized what had happened, the charge went through.
After hours of calls with Subway and Bank of America, she eventually got the charge reversed — but not without significant stress.
If you ever find yourself in a similar situation, there are steps you can take:
- Act fast. Report the error to your bank or card issuer immediately. Most banks allow 60 days to dispute a charge, but don’t wait that long.
- Document everything. Screenshot the receipt, the payment screen, and keep all merchant communication records.
- Know the fine print. Many banks offer protection against unauthorized transactions. However, not all mistaken charges are protected, especially if they are technically authorized.
- Build an emergency fund. It’s not just for layoffs or medical bills. Sometimes it’s for the unexpected stuff — like tipping $5,000 for a $129 product, then having to make up the difference while you sort things out with your bank.
Automatically invest your spare change
Tipping errors and other money slip-ups are a reminder of why it’s smart to build a financial cushion — even a small one.
One of the easiest ways to start is by saving your spare change.
With Acorns, you can start investing your spare change every time you make a purchase. After signing up and linking your bank account, Acorns automatically rounds up the price of your purchases to the nearest dollar and puts the difference into a dedicated savings account or smart investment portfolio.
Say you grab your usual morning coffee for $3.45. Acorns rounds it up to $4.00 and invests the extra 55 cents. If your daily round-ups average just $2.50, that’s around $900 saved in a year — just like that.
Plus, if you sign up now with a recurring deposit, you can get a $20 bonus investment.
Over time, such spare change can turn into real money — enough to cover surprise expenses, ease your stress during emergencies, or simply give you more freedom to tip generously without worry.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.