Get a grip on reality - OF COURSE it is bad to physically assault someone, in any way including coercing them to take money from an ATM- why do you even have to ask? This isn't a TV show where the ends justify the means if you can get away with it.
BTW: Being in the dictionary doesn't mean the word is not a slur.
"gyp also gip Pronunciation (jp) Slang
tr.v. gypped also gipped, gyp·ping also gip·ping, gyps also gips
To deprive (another) of something by fraud; cheat or swindle.
n.
1. A fraud or swindle.
2. One who defrauds; a swindler.
[Probably short for Gypsy.]"
"Random House Historical Dictionary of American Slang, Volume 1, A-G" by J.E. Lighter, Random House, New York, 1994: GYP or GIP v. 1.a. to cheat; defraud; charge exorbitantly - sometimes considered offensive to the Roma (Gypsies). Now colloq. b. to disappoint. 2. to steal, filch.