Get a Demo

Under 10 Employees? Shop Starter Kit

Chargeback Coverage FAQ



1. What is Chargeback Coverage? 

Participating Merchants will receive up to $250 per month in Chargeback Coverage starting the date outlined in your email. 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 December statement will have adjustments (credits) decreasing your bill for any chargebacks received between December 1 and December 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 Program is a new benefit we are offering select merchants. Please click here for additional information regarding the Order Processing 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. 


Please refer to your email for the starting date for Chargeback Coverage.

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 Toast products up to the $250 per month threshold. 


5. What is the requirement to get chargebacks covered?

You must be notified by email from Toast to participate in this program. You do not need to take any action to participate in the Chargeback Coverage program, we will take care of enrollment and set up for this benefit. 


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 a line item adjustment on your Credit Card Processing Statement:

  • “Credit for Chargeback Protection” - this will represent chargebacks refunded up to the amount of $250 
  • “Reversal of Chargeback Fee” - 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.