Breaking Down Toast's Payment Processing Fees

Network fees are set by card networks and are paid to the card network. These fees differ depending on several factors, similar to the variances seen with interchange fees. Network fees are sometimes named "assessments" or "association fees."

Issuing banks, or issuers, are financial institutions that issue payment cards and credit lines to businesses and consumers. These cards are branded by card networks. Some examples of issuing banks include JPMorgan Chase and Bank of America.

Card networks provide the infrastructure that connect banks to allow them to handle payments. Card networks are sometimes referred to as "card brands" or "card associations." Visa and Mastercard are examples of card networks, while American Express and Discover are both card networks and card issuers because they can issue cards on their own.

For a restaurant to be deemed PCI compliant, it must conform to a set of rules and regulations that apply to every business that accepts credit or debit cards. Toast itself is a PCI-compliant as Level 1 Service Provider, but the restaurant must take measures to establish its own operating environment as PCI compliant. You can read more here.

Merchant banks, or acquiring banks, are financial institutions that allow merchants (such as restaurants) to accept card payments and handle the merchant's flow of payment funds.