Breaking Down 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.

Image of Toast Flex for Guest Terminal with illustration overlay of hand swiping credit card.

Payment Types

One important category that impacts payment processing fees is whether the transaction itself is a card-present or card-not-present transaction.

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, dip, or tap.

Contactless Tap EMV Dip Swipe

Card-not-present (CNP) transactions

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 orders placed online or via phone.

Online Ordering 3rd Party Delivery Phone Orders Online Invoices

The processing costs for card-not-present transactions are higher than for card-present transactions due to the higher risk of fraud.

Understanding the processing fees

See Where Your Money Goes

Every time a customer pays for their order, that transaction is securely processed through Toast and Toast collects a processing fee from your restaurant for its services. Below, you can see an interactive breakdown of interchange and network costs alongside Toast's fees based on check size.

Data contained within this example is for illustrative purposes only

$2.06Payment processing fees

58¢ Reinvested in Toast
$1.48 Interchange and Network Fees

$72.94 goes straight to your restaurant

About the Fees

Two major components that make up your total payment processing cost are interchange fees and network fees. These fees are set and controlled by the card networks and banks.

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."

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.

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.

Powered by Payment Processing

We believe you should get more from your card processor than statements. By processing transactions through Toast, you gain insights into your business and access to products and resources that drive ROI.

Point of Sale

Toast Point of Sale combines powerful cloud-based software, payment processing, and beautiful hardware, all built for the restaurant industry.

Learn more

Toast Mobile Order & Pay™

Give your guests the ability to order and pay for their meals from the convenience of their own device. This mobile option simplifies operations, increases revenue and check size, and integrates seamlessly with Toast's Point of Sale.

Learn more

Toast Tap

The contactless payment solution that gives guests the flexibility to tap, dip, or swipe when paying for their order.

Learn more

Digital Ordering

Help your restaurant navigate the COVID-19 health crisis by providing access to takeout and delivery solutions and accept payment online so that you can keep your communities fed and revenue coming in.

Learn more

Fraud Prevention

Toast is a PCI-compliant Level 1 Service provider that helps to protect your restaurant - and customer - with innovative machine learning fraud prevention and encryption tools at no additional cost. Our vigilant team of fraud experts has your back, monitoring transactions for suspicious activity while keeping our solutions up-to-date in an ever-evolving market.

Learn more

Email Marketing

Stay connected with your guests, let them know where and when they can order from you, and drive sales with integrated email marketing from Toast.

Learn more


Toast Loyalty is a simple, integrated rewards program that restaurant owners can use to increase guest frequency. Delight your guests with easy enrollment, points-based rewards, and a seamless digital experience.

Learn more

Reporting & Analytics

Toast's payment processing services are fully integrated, connecting your real-time sales, menu, and labor data to uncover insights into your restaurant with advanced Reporting and Analytics. Toast centralizes all of your key business metrics into one easy-to-understand report that allows you to compare your performance across time periods and locations.

Learn more

365/7/24 Support

Toast’s team of dedicated Customer Care specialists strives to ensure your restaurant’s success and is available around the clock. Whether you need help with onboarding, tech support, payments, or fraud, no problem is too small for our support team of restaurant experts.

Learn more

Toast Invoicing

Create and send digital invoices that your customers can easily pay online and in person. Seamlessly manage your catering, events, and wholesale orders – powered by Toast Invoicing.

Learn more

Toast’s Payment Processing Pricing Options

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.

Schedule your free demo of Toast today.

Get a Demo