They want cash so that it doesn't have to be reported (or they estimate a number below the actual at the end of the year). If you tip on the credit card, it becomes part of their year-end reportable income as well as it is taxed before they get it back in tips. Meaning if you tip 15%, they that less the taxes on the money. Thats actually true of restaurants and other service tips as well.
dealing with the public is no joke. i'm not a hair stylist, but i do work in the beauty profession. i have a really big problem with clients showing up at their appointment time, and are not ready to be serviced. i had a client today and her appointment was at 11:15am. she was downstairs hanging out. she didn't come upstairs to change and fill out paperwork, plus she had to go to the bathroom. we didn't get started until close to 11:40am. i was nice to not cut her service, or tell her to reschedule. she better left a tip too!
They want cash so that it doesn't have to be reported (or they estimate a number below the actual at the end of the year). If you tip on the credit card, it becomes part of their year-end reportable income as well as it is taxed before they get it back in tips. Meaning if you tip 15%, they that less the taxes on the money. Thats actually true of restaurants and other service tips as well.