topic Re: Toast Credit Card Surcharging in Back Office & Team

Toast Credit Card Surcharging

Penguin_Meg1 — Tue, 26 Aug 2025 17:56:46 GMT

Hey Toasters!

I want to look into doing the surcharge fees for credit cards but it sounds like using the Toast Credit Card Surcharge system will increase our credit card rates, even if we stop using the surcharge system the higher rates will remain.... which seems counter productive....

It's unclear in the article how much processing fees will go up, it just says the rates will change.

Is anyone using this? https://central.toasttab.com/s/article/Get-Started-with-Credit-Card-Surcharging

If so how much have your rates increased? Was it worth it? Have you seen much customer backlash? Let me know your pros and cons

Thank you!

Re: Toast Credit Card Surcharging

HearthpizzeriaB — Tue, 26 Aug 2025 23:13:11 GMT

While I have not used surcharging myself, I have neighbors who have implemented "Listed price is cash price" and kitchen appreciation fees. For most, there was a little backlash at the start, but most people ended up accepting it over time.

Re: Toast Credit Card Surcharging

rcmck — Tue, 26 Aug 2025 23:46:49 GMT

Another thing to consider is debit cards are not eligible (PIN or as credit with signature) I don't know about you but a majority of our transactions are debit cards. Personally I would prefer to stick with IC+ and just include fees in prices, if anything I would consider a cash discount to try and persuade customers from using cards.

Re: Toast Credit Card Surcharging

au79teahouse — Wed, 27 Aug 2025 01:46:26 GMT

Build the fee into menu price and offer cash discount.

Re: Toast Credit Card Surcharging

Penguin_Meg1 — Wed, 27 Aug 2025 14:12:06 GMT

Thanks everyone!

Thanks so much for your input!

Yes I have been thinking of going in the direction of a cash discount as well. Do any of you do a cash discount? Do you just use a regular discount button and have the server enter the discount at the time of the transaction? My only worry is servers forgetting to give the discount.

Re: Toast Credit Card Surcharging

Penguin_Meg1 — Wed, 27 Aug 2025 14:14:12 GMT

I thought that was a strange distinction too, that it's legal to do a credit card fee but not debit cards. We get charged the same either way.

Re: Toast Credit Card Surcharging

rcmck — Wed, 27 Aug 2025 17:25:59 GMT

Surcharging debit cards is prohibited by all merchants in the U.S. according to FAQ, though the fees for debit card transactions are a lot less if you are not on a flat rate.

Re: Toast Credit Card Surcharging

rcmck — Wed, 27 Aug 2025 17:29:25 GMT

I don't at the moment, but that is basically what is described in the article on cash discounting, unfortunately there is no way to auto apply it which is why I haven't. https://central.toasttab.com/s/article/Toast-Cash-Discount-Overview