How to Use a Cash Discount or Surcharge with Toast (2026)
Toast, built for restaurants, centers on a cash-discount (dual-price) model, with surcharging available in some configurations. What to set up and the state-law gate.
Last verified: 2026-08 · Educational reference, not legal advice
For restaurants, a cash-discount program is usually the simplest compliant choice — it offsets the swipe fee without touching the contested surcharge rules or the tip math.
Why restaurants lean toward cash discount
Restaurants must keep the surcharge off the tip and calculate it on the pre-tip subtotal. A cash-discount model sidesteps both issues: the menu shows the card price and the guest simply pays less with cash or debit. Where surcharging is permitted, Toast may support it in specific setups — confirm in Toast’s help center.
Setup pattern
- Decide model: cash discount (legal everywhere) vs surcharge (only where permitted). For most restaurants, choose cash discount.
- In Toast, configure the dual-price or surcharge setting and set the percentage at or below the network cap if surcharging.
- Update menu boards / menu pages to show the card price prominently and the cash price clearly.
- Train servers: never add a surcharge on top of a tip, and disclose the fee before the guest pays.
- Verify the receipt prints the discount or surcharge as its own line.
If you surcharge, compute it on the pre-tip subtotal and never on the gratuity. Some states (e.g., Minnesota under HF 3438) require mandatory fees to be in the advertised price with oral and posted disclosure.
See the restaurant-specific rules.Read the restaurant & bar guide →
Related guides
Frequently asked questions
Only where state law permits surcharging. Toast’s primary fee-recovery model is the cash discount, which is legal in every state.
No. A surcharge must be calculated on the pre-tip subtotal and shown separately; never apply it to the gratuity.
In most cases yes — it is legal everywhere, avoids contested-state risk, and keeps the tip math clean.
Educational content, not legal advice. Cashbizly is an independent educational resource. Nothing here is personalized legal advice and it does not replace a licensed attorney or your state’s Attorney General.
Our state-by-state status reflects the consensus of published 2025–2026 compliance guides (card-network rules, LawPay, Stax, NCSL) as of the “last verified” date on each page. Surcharge law changes frequently and is actively litigated — always confirm current figures with your state Attorney General or a professional. Read our full disclaimer.