Toast Pay Card and PayOut Program:
Toast PayOut Line of Credit Information
Thanks for your interest in the Toast Pay Card and PayOut program! Below you will find detailed information about the 0% Toast PayOut Line of Credit that’s extended to employers* in order to fund early access to earned wages.
*Please note that the line of credit is extended directly to the entity that funds payroll, regardless of whether that entity is the employee’s direct employer. This is the entity that we refer to as the “employer” in this FAQ and the entity that will sign the Toast Pay Card Program Agreement and Credit Agreement.
What do I need to apply for a Toast PayOut Line of Credit?
Customers must be Toast Payroll customers, or in the process of signing up for Toast Payroll, and must be in an eligible state. During the application process for Toast Pay Card, employers will need to verify restaurant information, beneficial ownership information and restaurant history questions as part of the application process. Only an owner or a person identified as a control person may apply for the program and the associated line of credit
What is the Toast PayOut Line of Credit?
The Toast PayOut Line of Credit is a 0% business line of credit that employers will use to fund Toast PayOuts, a feature of the Toast Pay Card and PayOut program that provides Toast restaurant employees with early access to a portion of their earned wages and non-cash tips. The Toast PayOut Line of Credit is extended directly to the entity that funds the restaurant’s payroll (regardless of whether that entity is the employee’s direct employer). Each employer that signs up for the Toast Pay Card program will receive a line of credit.
Why do Toast Customers need to get a line of credit to offer their employees the Toast Pay Card and PayOut program?
The line of credit allows employers to fund their employees’ early access to pay and ensures that employers do not need to provide the capital themselves or change their payroll processes to offer Toast PayOuts. The line of credit can only be used to fund Toast PayOuts and for no other purpose.
Is credit being extended to employees or employers?
The 0% line of credit is provided by Toast, Inc. or WebBank (as set forth in the employer’s Credit Agreement) directly to the entity that funds the restaurant’s payroll (regardless of whether that entity is the employee’s direct employer). It is not provided to employees.
Who is the lender on the Toast PayOut Line of Credit?
Toast PayOuts are funded by a line of credit issued by Toast, Inc., or WebBank, as set forth in the employer’s Credit Agreement.
How is the line of credit amount determined?
Details about how the line of credit is sized can be found in the Credit Agreement that is delivered to employers when they sign up for the program. It is generally based on the number of employees and will fluctuate from time to time; however, the amount is intended to be sufficient to cover the maximum amount of the restaurant employees’ aggregate wages and tips eligible for Toast PayOuts for a given pay cycle. Once approved for the program, customers will receive communications about where to go to find important information regarding their line of credit
Where can Toast customers see information about headcount?
Employers can view their headcount by logging into Toast Payroll and clicking on the "Team" tab.
Where can employers see information about a line of credit that is funded by WebBank?
Employers can view their Toast PayOut Line of Credit details by referring to the approval email titled “You’ve been approved for Toast Pay Card and PayOut!” containing a link to the Toast PayOut Line of Credit dashboard.
How do employers draw off the Toast PayOut Line of Credit?
A request for funds from the line of credit is called a “draw.” Each employee request for a Toast PayOut through the MyToast App will be treated as a draw request by the employer. Draws are not sent directly to the employer–instead, the lender will apply funds from the line of credit onto the employee’s Toast Pay Card on the employer’s behalf. Once funded, tip payouts will be paid to employees on the Toast Pay Card as though they were receiving them in cash and wage payouts will be paid through a wage advance by employers to employees that employers recoup on payday through wage deduction.
How does repayment work?
On each payday during a pay cycle, employers will completely repay any amounts used to fund Toast PayOuts for employees assigned to that pay cycle. These amounts will be collected via ACH through the employer’s bank account on file with Toast at the same time that their payroll funds are collected through Toast Payroll. Employers do not need to take any action other than running payroll normally–instead of paying funds to employees, amounts accessed early through Toast PayOuts will go directly to the lender. Employers can see how much their employees have redeemed in Toast PayOuts in a given pay period by searching for the Timesheet Deductions report.
For example, an employee earns $500 in two weeks and elects to receive $200 early (i.e., before payday for that pay cycle) through Toast PayOut. That $200 is deducted from the employer’s Toast PayOut Line of Credit and paid out to the employee early. Then when the employer runs payroll for that pay cycle, the employer will pay the employee $300 and repay the lender $200, which is automatically deducted from the employer’s bank account via ACH through the Toast Payroll process. Repayment for any amounts drawn from the line of credit in a given pay cycle is always due on that pay cycle’s payday.
Where can employers find the terms and conditions of their Toast PayOut Line of Credit?
While signing up for the Toast Pay Card and PayOut program, employers will sign a Credit Agreement with Toast, Inc. or WebBank (as set forth in the Credit Agreement), that governs their participation in the program and the terms of the 0% line of credit that Toast, Inc. or WebBank will extend to the them to fund Toast PayOuts. In that process, Toast asks that employers save, download, and print the agreement. If they did not save a copy, they can request a PDF by reaching out to firstname.lastname@example.org or calling 617-209-3198.
Does the Toast PayOut Line of Credit have an interest rate or fees?
The Toast PayOut Line of Credit has no associated interest and there are no associated fees. The program is free for the employer and their employees to participate in. Toast Pay Cards do not have any associated ATM withdrawal or other fees; however, third-party ATM operators may charge a fee unless the cardholder uses an ATM within the MoneyPass® Network, and third-party financial institutions may charge a fee for over-the-counter withdrawals unless the institution is a Mastercard® member bank.
Who can Toast customers contact with questions?
For questions about the Toast PayOut Line of Credit, credit agreement and line of credit balances, customers can email us at: email@example.com, or call us at (617) 209-3198 between 9:00am - 5:00pm ET for more urgent items.
For questions about the Toast Pay Card Program agreement and application , customers can email firstname.lastname@example.org.
For questions about Toast Payroll or the Toast Pay Card and PayOut program (aside from agreement and application questions), customers can email us at: email@example.com, or call us at (617) 682-0225 between 9:00am - 5:00pm ET for more urgent items.
Does applying for a Toast PayOut Line of Credit impact an employer’s credit score?
No, applying for a Toast PayOut Line of Credit does not affect an employer’s personal or business credit score. During the application process, the employer will verify certain information, including information regarding its ownership, which allows their employees to sign up for a card without us doing further identity verification on each individual employee.
How can employers view the outstanding balance on their Toast PayOut Line of Credit?
Employers can view their outstanding balance in their payroll dashboard. Instructions below:
Clicking on the link to the Toast PayOut Line of Credit dashboard in the approval email
Customers will be directed to Toastweb where they’ll log in
Select “Toast PayOut” in “Funding” to review transactions
Toast Pay Cards are issued by Sutton Bank, Member FDIC, pursuant to license by Mastercard®. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. Toast PayOuts are funded by a 0% line of credit issued to employers by Toast, Inc. or WebBank, as set forth in the employer's Credit Agreement. Toast and WebBank each reserve the right to change or discontinue this program at any time. Toast Pay Card and PayOut is not available in all jurisdictions and is available to Toast Payroll customers only.