Toast's payment processing fees
We know every dollar is hard-earned in the restaurant industry. Now more than ever it is important for us to be transparent with you about where payment processing fees go when a customer pays for their order.
Understanding payment types
Transaction type plays a key role in determining your processing fees. See the breakdown below.
Card-present (CP) transactions
A card-present (“CP”) transaction occurs when payment details are captured in-person at the time of the sale via a successful swipe, EMV dip, or contactless tap.
Accepting payments in person helps cut processing costs and reduce chargebacks. That’s the power of in-person payments.
A card-not-present (“CNP”) transaction occurs when a cardholder and their card are not physically present at the time of sale and/or the card information needs to be “typed-into” a card reader. Common types of CNP transactions include online ordering, 3rd party delivery, phone orders and online invoices.
The processing costs for card-not-present transactions are higher than for card-present transactions due to the higher risk of fraud.
Custom pricing. Zero confusion.
Our goal at Toast is to provide our customers with a clear and transparent payment processing rate ー no hidden fees, no bait and switch, no unexplained rate hikes; what you see in your quote is exactly what you'll get. We’ll work with you to build a custom rate specific to the characteristics of your restaurant.
Frequently asked questions
Interchange fees make up the bulk of processing fees. They’re set by card networks and are paid to the bank that issued the card that is used for each transaction. Typically, interchange is made up of a percentage of volume and a flat per transaction fee. Note that for American Express transactions, these fees are named "discount fees" rather than "interchange fees."
Need more help?
We're here to help you navigate payment processing fees. Ask the community or contact customer care.