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Chargeback Coverage FAQ

1. What is Chargeback Coverage? 

  • Merchants participating in the new pricing solution described in the email offer will receive up to $250 per month in Chargeback Coverage. If you are a participating merchant, this means that beginning on the stated effective date in your email offer, Toast will credit your account each month for chargebacks for transactions processed through Toast totaling up to $250 in the prior month (“Chargeback Coverage”). In addition, Toast will refund the processing fee for all chargebacks, as covered in the next FAQ #2. You will see the adjustments in your monthly statements crediting your account up to the $250 threshold for any chargebacks you receive, and for all chargeback processing fees. For example, your  September statement will have adjustments (credits) decreasing your bill for any chargebacks received between September 1 and September 31 up to $250, and for related fees for all chargebacks. You will be responsible for all chargeback amounts over $250 each month.

  • Please note that the Chargeback Coverage for Toast Online Order Fee and the questions addressed here apply only to merchants who have received an email offer for the new pricing solution. This program is available to you as part of the new pricing solution you are receiving on Toast Online Ordering (reduction in Card-Not-Present processing rates and introduction of the Toast Online Ordering Fee) and you must be a participating merchant in the new pricing solution at the time the Chargeback Coverage statement credit is issued to receive the credit. Please click here for additional information regarding the Toast Online Ordering Fee. Toast reserves the right to remove any merchant from the Chargeback Coverage at any time including if Toast, in its sole discretion, suspects that the merchant is misusing or abusing the Chargeback Coverage Program or otherwise engaging in fraudulent activity or activity in violation of their Toast Merchant Agreement or payment card network rules, including with respect to excessive chargebacks. The Toast Merchant Agreement and payment card network rules, including with respect to excessive chargebacks,  continue to apply to all merchants participating in the Chargeback Coverage program. 

2. Is the $15 processing fee for chargebacks waived?

  • Toast will refund the $15 fee ordinarily assessed for chargebacks — no matter how many chargebacks your restaurant has each month, you will not be responsible for the chargeback fee for those transactions processed through Toast. 

3. How long will the Chargeback Coverage last?

  • The Chargeback Coverage program is subject to change or termination at any time, and we will notify you 30 days before any termination or any change to the information presented in these FAQs becomes effective, except where a shorter period is required under payment card network rules or applicable law. 

4. What product(s) will we cover chargebacks on?

  • Chargebacks will be covered on all products up to the $250 per month threshold. 

5. What is the requirement to get chargebacks covered?

  • You must be invited by email from Toast to participate in this program. Chargeback Coverage is provided only to merchants participating in the new pricing solution, so you must be a participant at the time Chargeback Coverage credit is issued to get Chargeback Coverage program benefits. Otherwise, you do not need to take any further action to participate in the Chargeback Coverage program. For information about declining to participate, see FAQ #10 below.

6. When will I receive my refund and where will it be delivered?

  • On a monthly basis, you will receive the Chargeback Coverage refund by statement credit, as described above, on your monthly Credit Card Statement. 

  •  Chargebacks will continue to be withheld from your daily card settlement receipts prior to being refunded up to the $250 threshold as further described in FAQ #1. Additionally, you will continue to receive email notifications each time you receive a chargeback and/or successfully challenge a chargeback. 

7. Where will the credit show up in my account?

  • The Chargeback Coverage refund will show up as two-line item adjustments on your Credit Card Processing Statement:

    • “Chargeback Coverage Credit” - this will represent chargebacks refunded up to the amount of $250 each month (see FAQ #1)

    • “Chargeback Processing Fee Credit” - this will represent chargeback fees waived each month (see FAQ #1)

8. Should I continue to fight the chargebacks my restaurant receives even with Chargeback Coverage?

  • Yes, we recommend continuing to fight the chargebacks your restaurant receives using the Chargeback Challenger tool if you believe the transaction should not be charged back (see here to learn more). The outcome of the chargeback dispute does not impact whether the chargeback counts toward the $250 threshold each month. A successfully disputed chargeback will count toward the $250 total threshold and will be refunded as described in FAQ #1, up to the threshold.

9. When will I start receiving Chargeback Coverage?

  • You will begin to receive Chargeback Coverage from the stated effective date in your email offer, with refund credits issued starting with the monthly statement for that month.

10. I no longer want to participate in the new pricing solution and Chargeback Coverage. What do I do?

  • If the opt-out deadline stated in your email offer has not yet passed and you would like to opt-out of both the new pricing solution and Chargeback Coverage, please notify us by following the steps in the email offer you received. 

  • If the opt-out deadline stated in your email offer has passed and you wish to stop participating in both the new pricing solution and Chargeback Coverage, please reach out to [email protected] to discuss available options.