Home > Processor Research > TabbedOut

Is TabbedOut Right for Your Bar or Restaurant?

Author:
Updated:
Maintained Since: April 17, 2014

We take our role in providing guidance and education regarding the card payment industry very seriously. At our own expense, we have vigorously defended our right to continue expose unethical and predatory practices in the industry, successfully defeating every attempt to silence us. However, fending off frivolous lawsuits is costly. To sustain these efforts, one of the ways we generate revenue is through affiliate partnerships with ethical providers. This means that some of our outgoing links connect business owners to trustworthy, low-cost payment processors, which is what most of our readers seek. We see this revenue channel as a win-win-win for everyone involved. Business owners find good processors, processors get good clients, and we are able to continue to provide a valuable service to the small business community. We also recommend and link to many services that do not compensate us. Our priority is to guide you to the best solutions for your needs, regardless of potential revenue. If you have questions, please feel free to contact us.

All mentions of rate and fee costs are estimations based on publicly available information and client feedback. Actual costs may vary based on a variety of factors unique to your business.

TabbedOut
Rating
A
5/5
full starfull starfull starfull starfull star
Leave User ReviewCompare Ratings

Pros

Mobile payment ease
Contactless payment option
Enhanced security features
Reduced checkout time
User-friendly interface

Cons

Possible transaction delays
Inconsistent support response
Possible service fees
Limited payment methods
Not universally accepted

Note: As of 2023, the TabbedOut website has been gutted. It appears they are still in business, but we will monitor the situation.

Overview

In this review of TabbedOut, we take a closer look at the company’s mobile payment solutions created for the hospitality industry. We examine their services, pricing, contract terms, and customer feedback to provide a clear picture of what the company offers. The review also considers fee transparency, the quality of customer support, and overall client satisfaction. By the end, you will know whether TabbedOut is the right fit for your business’s payment processing needs.

About TabbedOut

Screen Capture of TabbedOut Homepage
Tabbed Out Homepage

TabbedOut is an SaaS (Software as a Service) company that enables a business’s customers to pay their tabs via a mobile phone app. Designed for businesses in the bar and restaurant sectors, TabbedOut also provides merchants with the ability to offer loyalty programs and discounts to customers who pay with TabbedOut. TabbedOut was launched in 2010 and has since secured partnerships with Harbortouch and Cayan to increase its use within restaurants and bars. The development group behind Tabbed Out, ATX Innovations, also offers UNION POS  as a restaurant-focused POS solution. As of 2022, TabbedOut is advertising as “TabbedOut by UNION” and TabbedOut is now available through the UNION app, which may mean the company is transitioning in some form.

Products & Merchant Services

Payment Processing

TabbedOut offers a mobile payment platform tailored for the hospitality industry, enabling patrons to open, view, and settle their bar or restaurant tabs directly from their smartphones.

Integration with Point of Sale Systems

TabbedOut integrates with various Point of Sale (POS) systems, streamlining the payment process for both customers and the establishment’s staff and management.

Secure Payment Processing

Security is a critical aspect of any payment solution. TabbedOut encrypts customer payment information, mitigating the risk of data breaches and fraud.

Marketing and Customer Insights

TabbedOut provides tools for businesses to utilize customer data, helping them understand their clientele, design targeted marketing campaigns, and foster customer loyalty.

Promotions and Loyalty Programs

TabbedOut supports the creation and management of promotions and loyalty programs, integrated within the mobile payment experience to boost customer engagement and repeat business.

Direct Customer Feedback Channel

After settling their tabs, customers can give immediate feedback on their experience through TabbedOut, providing businesses with valuable insights to improve their services.

Customer Reviews & Sentiment

Positive User Experience

There are no reported negative TabbedOut reviews on typical merchant complaint forums, indicating the service’s legitimacy. TabbedOut boasts high ratings on both the iTunes App Store and Google Play Store, with users expressing satisfaction with its performance. However, a common complaint revolves around limited service availability, often defaulting to Austin, Texas, where the company is headquartered. If you’ve had experiences with TabbedOut, share your review in the comments below.

Legal Standing and Penalties

No class-action lawsuits or FTC complaints have been filed against TabbedOut. Dissatisfied customers seeking recourse can report it to the relevant regulatory authorities.

TabbedOut Customer Support Channels

Although users have raised concerns about software glitches, invasive permissions, and limited participating businesses, these complaints mainly come from users rather than business owners. TabbedOut offers a phone number and a contact form on its website, aligning with the support options typically provided by top-rated companies in the merchant services industry.

Industry Scores & User Ratings

Online Ratings Summary
PaymentPop1
BBB RatingN/A

PaymentPop Rating for TabbedOut

Negative Feedback

Have you read anything about cyber security recently? Like maybe how scammers overlay QR codes with fakes that take you to an app install? And how you should NEVER say yes to an install that is triggered by a QR code?

Well, that’s what restaurant QR codes that are set up on this app do, if the app is not already installed. I spent a lot of time at a restaurant tonight because I couldn’t believe this was happening. A friend who had apparently previously already installed it ordered for me. Later on, I Googled to figure out what was going on.

The whole concept here is wrong from a consumer’s standpoint, and possibly from a restauranteur’s as well. TabbedOut is seeking to become a payment middleman. Don’t we already have Google Pay, CC companies, ad nauseum?

If the label next to the QR code had explained that it REQUIRED the TabbedOut app, I might not have been so frustrated, but I have to say the chutzpah of the blatent middleman grab for private data would still have left me appalled.

Positive Feedback

There are no positive reviews published about TabbedOut on the PaymentPop website.

No BBB Complaints

ATX Innovations, Inc., the developer of TabbedOut, currently maintains no rating with the Better Business Bureau based on 0 complaints filed in the past 36 months. This clean complaint record may be due to the fact that complainants are unlikely to seek out the developer of an app to complain about the app, but it nevertheless indicates that the company itself does not attract complaints.

An “A” Rating

Given the total absence of complaints about the company, we agree with the BBB‘s rating in this case, but readers should be aware that there is reason to be skeptical of the BBB’s rating system.

Processing Rates & Fees

Undisclosed Monthly Fee

The primary cost detail provided by TabbedOut in its official materials is the absence of per-transaction fees. This is highlighted in the FAQ section of its website:

TabbedOut is free for consumers. We have no service charges or incremental fees associated with our service. You can use the app to pay bar and restaurant tabs and get rewarded with offers at no additional charge.

Other contractual details, such as standard fees, are less transparent. A company blog post suggests a minimal monthly fee when integrating TabbedOut with a Harbortouch POS system. It seems that adding TabbedOut to an existing POS system typically involves a flat monthly licensing fee. This fee varies based on factors such as the client’s payment processor, POS system, and the specific nature of the business. To minimize costs, it’s advisable to combine TabbedOut with a cost-effective payment processor.

No Negative Reports

Our search did not uncover any TabbedOut complaints specifically mentioning early termination fees, nor are there reports of the monthly fee being considered excessive or unfair. Therefore, TabbedOut currently receives an “A” rating. For those with firsthand knowledge of other TabbedOut fees, your contributions are welcomed in the comments section below this review.

Employee Reviews & Sales Practices

Partnership-Focused Marketing Strategy

TabbedOut appears to market itself primarily through strategic partnerships with POS providers and credit card processors. Many POS systems now arrive with the option to add TabbedOut for an additional monthly fee, and processors like Cayan are beginning to promote TabbedOut to their clients in the restaurant industry. The company’s consumer app is also being marketed through more traditional channels, including the TabbedOut website and physical signs at client locations.

No Deceptive Tactics

There is no indication at this time that TabbedOut employs independent sales agents or telemarketing in an effort to advertise its services. There are also no TabbedOut reviews that mention deceptive sales tactics by the company, and TabbedOut’s website does not list any misleading rate quotes. We are therefore awarding the company an “A” rating at this time.

This compares favorably to our list of best credit card processors.

TabbedOut Competitors

Compare TabbedOut to competitors that earned top marks.

Host Merchant Services logo
Pricing
Helcim logo
Pricing
CDG logo
Pricing

Bottom Line

TabbedOut is regarded as a valuable POS solution, based on positive reviewer feedback. The app streamlines the checkout experience while enhancing client-customer engagement, and its pricing structure reportedly involves a straightforward flat monthly fee. Though the service’s cost can vary for different clients, there have been no notable complaints about overpricing or predatory terms.

For restaurant owners considering TabbedOut, it’s crucial to fully understand all potential costs associated with the service before signing up. Additionally, pairing TabbedOut with a highly-rated restaurant merchant account provider can further optimize transaction management. By ensuring compatibility and alignment between these services, restaurant businesses can enhance their customer experience and streamline their payment processing workflows.

Read Actual User Reviews

See User ReviewsWrite a Review
All user reviews have been moved to our partner, PaymentPop.com

Contact TabbedOut

Contact & Customer Support
FounderJeffrey Kalikstein
CEOAlex Broeker
Headquarters804 Congress Avenue 5th Floor Austin, TX 78701
Toll-Free Customer Support(866) 626-8045
Websitetabbedout.com