# Guideline 3.2.1(vii) - Acceptable Business Model: Tipping Where Platform Takes a Cut

**Guideline:** 3.2.1 · **Store:** Apple App Store · **Severity:** medium · **Fix difficulty:** medium · **Typical turnaround:** 1-3 days

Canonical URL: https://appstorereject.com/rejections/apple/3/guideline-321vii-acceptable-business-model-tipping-where-platform-takes-a-cut

## Description

Apple is rejecting your app because it facilitates tipping or gifting between users but the platform takes a commission, service fee, or percentage cut from the tips. Apple's guideline allows optional tips from one user to another as a voluntary, no-strings-attached expression of gratitude -- but the platform facilitating the tips must not take a cut. The intent of this guideline is to distinguish genuine tips (100% goes to the recipient) from disguised revenue sharing that should be processed as IAP. If your platform retains any portion of a tip, Apple considers it a payment for a digital service, which falls under IAP requirements. This rejection commonly hits social platforms, live streaming apps, content creator platforms, and service marketplaces that offer tipping features. The fix depends on your business model: either pass 100% of tips to creators and monetize differently, or convert the tipping system to an IAP-based virtual gifting system where Apple gets its commission.

## Common variations

- Platform takes a commission or service fee from user tips
- Percentage of tips retained by the app rather than going to recipient
- Tipping mechanism includes platform fee deduction
- Not 100% of the gift goes to the receiver

## Example rejection email

```
Guideline 3.2.1(vii) - Business - Acceptable

We found that your app facilitates tips from users to content creators, but the platform retains a percentage of each tip. Specifically, the app takes a 20% service fee from tips sent by viewers to streamers.

Apps may enable individual users to give a monetary gift to another individual without using in-app purchase, provided that the gift is a completely optional choice by the gift giver, and 100% of the funds go to the receiver of the gift.

Next Steps:
Please revise the app so that 100% of user-to-user tips go to the recipient, or use in-app purchase for the tipping/gifting mechanism.
```

## Resolution steps

## Quick Assessment
- **Risk level:** Medium
- **Resolution path:** Fix & Resubmit
- **Typical turnaround:** 1-3 days

## The Fix

### Option 1: Pass 100% of tips to recipients
1. **Remove platform commission from tips** -- Ensure every dollar tipped goes entirely to the recipient. No service fee, processing fee, or platform cut.
2. **Cover payment processing costs differently** -- Absorb Stripe/payment processing fees into your operating costs, or monetize through other means (subscriptions, ads, premium features via IAP).
3. **Document the flow** -- In Review Notes, explain that 100% of tips go to recipients and how your platform monetizes independently.

### Option 2: Convert to IAP-based virtual gifts
1. **Replace direct tips with virtual currency** -- Users purchase coins/gems/tokens via IAP, then send virtual gifts to creators.
2. **Apple gets its 30% commission** through the IAP purchase of virtual currency.
3. **Creators cash out** virtual gifts at your platform's conversion rate.
4. **This is the model used by** most live streaming platforms (TikTok, Twitch, YouTube).

### Option 3: Use Apple Pay for pass-through tips
1. **Implement Apple Pay** for tip transactions where 100% goes to the recipient.
2. **You may charge creators separately** (e.g., a monthly subscription to list on your platform) but cannot take a cut of individual tips.

## Prevention
- Design tipping features to pass 100% to recipients from the start
- If you need revenue from the tipping flow, use IAP virtual currency
- Do not mix tipping and platform fees

## Before / after examples

**Before:** User sends $10 tip to a streamer; the platform retains $2 (20% fee) and the streamer receives $8
**After:** Option A: User sends $10 tip and the streamer receives the full $10; the platform monetizes through a separate creator subscription. Option B: User purchases 1000 coins via IAP ($9.99), sends coins as virtual gifts, and the creator cashes out at the platform's rate
**Why it works:** Tips must pass 100% to the recipient. If the platform needs revenue from the gifting flow, it must use IAP virtual currency.

## Common questions

**How long does this typically take to fix?**

Typical turnaround is 1-3 days (difficulty: medium). After resubmission, most re-reviews complete within 24-48 hours.

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*Machine-readable source: https://api.appstorereject.com/api/rejections/detail?slug=guideline-321vii-acceptable-business-model-tipping-where-platform-takes-a-cut*