Guideline 3.2.1
Guideline 3.2.1(vii) - Acceptable Business Model: Tipping Where Platform Takes a Cut
Our Take
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.
Resolution Guide
Remove platform commission from tips
Ensure every dollar tipped goes entirely to the recipient. No service fee, processing fee, or platform cut.
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).
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
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
Example Rejection Email
Before & After
User sends $10 tip to a streamer; the platform retains $2 (20% fee) and the streamer receives $8
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
What changed: Tips must pass 100% to the recipient. If the platform needs revenue from the gifting flow, it must use IAP virtual currency.
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