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If you do not prepay the tips, your onboard expense account will show the same daily gratuity charge and your credit card will be charged at the end of the trip.  Some people prepay the gratuity as a way to spread out payments for the cruise and have less of a final bill.

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By default if you don't prepay they will assess a fixed amount per person per night and charge it your account ($13 or so dollars per person per day off the top of my head).

You DO have the option to have that charge reversed and replace it with cash if you choose to do so, if you go to Guest Services and tell them you do not want the charges made automatically and will be providing cash instead you can do so. (As far as I know this is still the case, I have not had to test it for any reason in about 2 years but have not heard that it has been changed again).

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If you do not pre-pay gratuities, then every day of your cruise your SeaPass account will be charged a daily gratuity.  That will cover your gratuities for your stateroom attendant and dining room staff (head waiter, waiter and assistant waiter).  There is nothing extra you need to do.

Alternatively, you may go to Guest Services and ask to have the automatic gratuities taken off so that you can pay each of these people individually.

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