We break this down into two parts since tax and tip are treated differently on our end:
Tax
Valor currently calculates discounts on the full transaction amount, including tax.
Example: If a customer spends $100 + $8 tax, and you offer a 10% discount, the member receives $10.80 back (10% of $108).
We understand merchants prefer discounts to apply before tax, but here’s why that’s not how our system works today:
We don’t receive itemized receipts or tax line data from card transactions.
Because of that, we can’t reliably separate pre-tax and post-tax amounts across all merchants.
To ensure accuracy and fairness, we base the discount on the total amount charged — the one value we can see 100% of the time.
Tip
How tips are handled depends on your POS system:
If tips are added after the subtotal (e.g., written in and signed), we can usually exclude the tip from the discount calculation.
On modern POS systems like Square or Toast, tips are often bundled into the transaction amount upfront — so the discount may be applied to the total including tip.
Want more control over this?
If tax or tip behavior is important to your operation, you’re welcome to share POS data with us. This will enable us to make more accurate discount calculations.