A restaurant that wants pass-through pricing wants to see what each card payment really costs: the fees charged by the card networks and banks, then a markup from the processor on its own line. A question to ask is whether your restaurant system sells the point of sale (POS) software, the hardware and the card processing as one package, and whether you can change the pricing without changing the system. This guide explains pass-through pricing in plain words, lists the fee lines to look for on Toast or any restaurant POS, shows what our 2026 pricing study says and does not say about in-person sales, and gives you a checklist for switching without disrupting service.
The short answer
- Pass-through pricing means the real card costs are passed to you at cost, plus a stated markup. It is also called interchange-plus or cost-plus.
- Ask whether you can have it with your POS. If the system and the processing are one package, you may have to change both.
- Restaurant savings are smaller than online savings. In NPS’s 2026 pricing study, a model, the gap was widest for online and invoice sales and smaller in person.
- The software bill matters as much as the card bill. Check subscriptions, hardware and add-on modules.
- Read Toast’s own current pricing page. We do not quote its prices, because they change.
Pricing Models
Pass-through vs. flat-rate pricing
- Can you see each cost layer?
- Pass-through (interchange-plus)Yes, interchange, network fees and markup on separate lines
- Flat-rateNo, layers blended into one percentage
- Statement reading effort
- Pass-through (interchange-plus)More effort required
- Flat-rateSimpler to read
- Best suited for
- Pass-through (interchange-plus)Growing volume where interchange-plus may cost less
- Flat-rateVery small or new businesses
The question to ask as volume grows is whether interchange-plus would cost you less.
What pass-through pricing means for a restaurant
Every card payment has three layers of cost. Interchange is a fee set by the card networks and paid to the bank that issued the customer’s card. Network fees are smaller charges paid to Visa, Mastercard and the others. The processor’s markup is what the company handling your payments adds for itself.
With pass-through pricing, also called interchange-plus or cost-plus, the first two layers are passed to you at what they actually cost, and the markup is a stated amount on its own line. A debit card costs you less than a premium rewards card, and your statement shows both. With flat-rate pricing, you pay one percentage on every card, and the layers are blended into it, so you cannot see them.
Neither is right for every restaurant. Our guide to the four merchant account pricing models says flat rate suits very small or new businesses, and that the question to ask as volume grows is whether interchange-plus would cost you less. It also says interchange-plus takes more statement-reading effort. For the long version, see where payment fees actually go and flat rate vs cost-plus: which costs less.
Why the card bill hurts a restaurant
A restaurant has long hours, thin margins and a large share of sales on cards. Each small check carries a percentage fee, and that adds up over thousands of checks. On a $40 check, the difference between a rate that is a few tenths of a percent higher and one that is lower is small in dollars on one table and large across a year.
The card fee is only one of the bills. Restaurant systems also charge for software, often per terminal or per location, for hardware such as handhelds, kitchen printers and displays, and for optional modules such as online ordering, gift cards, loyalty and staff scheduling. The total of all of these, not the card rate by itself, is what you spend to run payments. Look at the whole stack when someone tells you a system is cheaper.
The fee lines to look for on Toast, or any restaurant POS
We do not quote Toast’s prices on this page. Plans, hardware and fees change, and the provider’s own current pricing page is the only reliable source. Get that page and your latest statements, and write down each of these.
- How card processing is priced. Is it a single rate on every card, or are the interchange and network costs shown separately with a markup? Ask for the answer in writing.
- The markup. If the quote is pass-through, what is the markup, and is it a percentage, a fixed amount per sale, or both?
- Rates for different kinds of sale. Cards that are dipped or tapped, cards typed in by hand, online orders and delivery orders may be priced differently.
- Monthly software fee. Per terminal, per location, or per feature tier. What does adding a second location or a handheld cost?
- Hardware. Bought, leased or financed. What happens to it if you cancel?
- Add-on modules. Online ordering, gift cards, loyalty, payroll and others. Write down each module you use and its monthly price.
- Payout timing and holds. When does money reach your bank, and what is the cost of faster payouts?
- Chargeback and dispute fees. What a dispute costs, and whether the fee is returned if you win.
- Contract terms. Length, auto-renewal and early termination charges.
- Lock-in. Can you take your card processing elsewhere and keep the same POS? If not, any change in processing means a change of system.
Before You Sign
Fee lines to check on any restaurant POS
- Ask how card processing is priced, single rate or interchange and network costs shown separately with a markup
- Ask for the markup in writing, percentage, fixed amount per sale, or both
- Check rates for different kinds of sale, dipped, tapped, typed-in, online and delivery
- Write down the monthly software fee, per terminal, per location, or per feature tier
- Confirm hardware terms, bought, leased or financed, and what happens if you cancel
- List each add-on module you use and its monthly price, online ordering, gift cards, loyalty, payroll and others
- Check payout timing and holds, when money reaches your bank and the cost of faster payouts
- Ask about chargeback and dispute fees, and whether the fee is returned if you win
- Read contract terms, length, auto-renewal and early termination charges
- Ask about lock-in, whether you can take card processing elsewhere and keep the same POS
The last two lines decide how much bargaining power you have. Ask whether processing is tied to the software and how long the contract runs, because that affects how easily you can ask for better pricing. For a general list of questions that fits any provider, see 20 critical questions to ask your payment processor before signing.
What our 2026 pricing study says, and what it does not
NPS published a pricing study in 2026 that compares flat-rate pricing with interchange pass-through pricing. Read it with cautions. It is a model built on published rate schedules, not a survey of restaurants. It was written by a processor that sells pass-through pricing. And it did not model Toast or any restaurant system.
What it does say is useful if you read it carefully.
The biggest gap was online and on invoices, not in person. Businesses selling online or by invoice paid 19% to 31% less on pass-through in the model, across average tickets from $15 to $2,500. For in-person sales, the study’s model shows about 6.5% at a $15 ticket and 19% to 25% from a $40 ticket upward, against Square’s 2.6% plus 15 cents. The study says the gap is largest online and for invoices. So do not expect the same percentage saving at your tables that the study shows for an online store.
Debit cards drive part of the gap, but not every debit card. Federal rules cap the fee on debit cards from large banks at 0.05% of the sale plus 21 cents, with a 1 cent fraud adjustment. Debit cards from smaller banks are exempt from the cap and cost more. The study assumed that 35% of debit volume came from exempt cards. It also assumed that debit makes up about 35% of card payments on a $40 sale, 30% on a $75 sale and 25% on a $150 sale. Those mix figures came from NPS merchant experience and are inputs, not measurements of your restaurant.
A flat-rate benchmark for in-person sales. The study used Square’s published in-person rate of 2.6% plus 15 cents, accessed in October 2026, as its in-person flat-rate comparison. That is the study’s yardstick, not a statement about what you pay now.
The study promises nothing for your restaurant, and neither do we. It is one model with stated inputs. Your statement decides your real cost.
Pass-through pricing vs dual pricing and surcharging
Restaurants often hear about two other ideas in the same conversation. They are different from pass-through pricing, and it helps to keep them apart.
- Pass-through pricing changes how you are charged. Your costs and markup are visible, and your menu prices do not change.
- Dual pricing changes how prices are shown to customers: a card price and a lower cash price are both posted. The fee is built into the listed price and customers who pay with cash get a discount.
- Surcharging adds a fee at the register for paying by credit card. NPS notes it generally requires registration and advance notice to customers, and that some states restrict it.
Three Pricing Programs
Pass-through, dual pricing and surcharging differ
| Program | What changes | Who sees the difference |
|---|---|---|
| Pass-through pricing | How you are charged | You, on your statement |
| Dual pricing | How prices are shown to customers | Customers, card price and cash price both posted |
| Surcharging | A fee added at the register for credit cards | Customers, requires registration and advance notice |
Our dual pricing guide explains the difference and why correct display matters. If a provider suggests one of these programs, ask for the rules that apply in your state in writing, ask who is responsible if a customer complains, and ask what the sign must say. Some restaurants choose pass-through pricing and stay away from the other two because they do not want any change in how prices look on the menu. That is a legitimate choice.
What your restaurant needs from the POS itself
The pricing is half of the decision. The other half is whether the system does what your kitchen and floor need. Before you request a quote, write down your own requirements. Here is a starting list.
- Table service, counter service or both, and whether servers need handhelds.
- Pay-at-the-table and split checks.
- Routing of orders to the kitchen and to printers or screens.
- Tip handling, and how tips are reported and paid out to staff.
- Online and mobile ordering, if you take them.
- Gift cards and loyalty, if you use them.
- Menu changes, item modifiers and happy hour pricing.
- What happens if the internet goes down on a Friday night.
NPS describes its restaurant POS options as including server-based systems, kitchen integration, mobile orders, split checks, tipping controls and pay-at-the-table. We are not claiming it replaces every feature of every system. If you have a requirement that is not on that list, ask for a demonstration of exactly that feature before you commit. NPS also says it connects with more than 500 software products, which matters if you rely on separate scheduling, accounting or inventory tools. Ask for the list for your tools.
Disputes and chargebacks in a restaurant
A guest enjoys a meal, leaves a tip and then disputes the charge. This is often called friendly fraud. Ask what dispute tools your system includes. NPS wrote a guide for it: Chargeback Survival Guide for Bars, Nightclubs and Restaurants. Whichever system you choose, ask what records it keeps for each check, such as signed slips, EMV chip data and itemized receipts, and how easily you can pull them when a dispute arrives.
Switching systems without disrupting service
A restaurant cannot close for a week to change software. Plan the cutover as carefully as a menu launch.
- Get everything in writing first. Pricing, hardware, install date, training, support hours and what the old contract will cost to end.
- Rebuild the menu off hours. Items, modifiers, prices, taxes and kitchen routing take longer than owners expect.
- Move gift card and loyalty balances if you use them, and check that existing balances will still work.
- Train staff on a slow day, not on the first night.
- Cut over on your quietest shift. Keep the old system available for a short overlap.
- Ask how fast a person answers. A terminal that stops during dinner service is an emergency, and you want a phone number, not a ticket form. Test whichever provider you choose by calling before you sign.
Switching Your POS
Cut over without disrupting service
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Get everything in writing firstPricing, hardware, install date, training, support hours and what the old contract will cost to end.
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Rebuild the menu off hoursItems, modifiers, prices, taxes and kitchen routing take longer than owners expect.
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Move gift card and loyalty balancesCheck that existing balances will still work.
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Train staff on a slow dayNot on the first night.
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Cut over on your quietest shiftKeep the old system available for a short overlap.
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Ask how fast a person answersA terminal that stops during dinner service is an emergency, test by calling before you sign.
When staying put is the better answer
A switch may not be worth it if your system fits your kitchen and floor, your contract is long and expensive to leave, or your total monthly cost for software, hardware and cards is already reasonable. Ask your current provider whether it will show your processing costs separately or offer a lower markup. Their answer tells you something useful either way.
You can always check your own number first. NPS’s guide to reading your merchant statement shows how to calculate your effective rate, which is your total processing fees divided by your total card sales. NPS offers a free statement review, with no obligation.
Common mistakes when shopping for pass-through pricing
- Comparing the markup alone. A low markup with high software, hardware and module fees can cost more in total.
- Not asking about lock-in. If you cannot take your processing elsewhere, you cannot compare.
- Skipping the demo of your busiest workflow. Test split checks, modifiers and tips on a real order.
- Believing a saving with no stated inputs. A real quote says what card mix and average check it assumed.
- Switching right before a busy season. Give yourself time to train and fix problems.
For the full picture across every sales channel and average ticket, read our guide to cheapest payment processing in 2026.
If you are also weighing general-purpose providers, see our comparison of the best payment processors by business type.
Who wrote this, and where NPS fits
Nationwide Payment Systems (NPS) publishes this guide. We are a payments company, in business since 2001, and we sell merchant accounts and point of sale systems, including restaurant options, so we are not neutral. We offer interchange-plus (cost-plus) and simplified pricing, and we do not publish one universal rate. Browse the payments guides or contact our team for a second opinion on a quote. For a plain-language look at how we think about service, see transparent payment processing plus real support.
We are not the right fit for everyone. If your current system fits your restaurant and your total costs are fair, you may be better off staying. We do not quote competitors’ current prices, because those change.
Bottom line
A restaurant that wants pass-through pricing wants to see each cost on its own line, and the first question to ask is whether the pricing can be separated from the POS system at all. Check the full stack: card pricing, software, hardware, add-on modules, contract and lock-in. Remember that in NPS’s 2026 pricing study, a model, the savings gap was smaller in person than online, so price your own checks before you believe any number. Read Toast’s own current pricing page, read your own statements and compare line by line. If you want a second opinion, contact our team, and if staying put is the better answer, we will say so.
Frequently asked questions
What is pass-through pricing for a restaurant?
It is pricing where the real card network and bank fees are passed to you at cost, and the processor adds a markup shown on its own line. It is also called interchange-plus or cost-plus pricing. Your statement shows what each kind of card costs.
Can I get pass-through pricing and keep my restaurant POS?
It depends on the system. Some bundle the software and the processing, so changing one means changing the other. Ask your provider whether you can use a different processor with the same POS, and get the answer in writing.
How much will a restaurant save with pass-through pricing?
It depends on your card mix and average check. NPS’s 2026 pricing study, a model, found its biggest gaps online and for invoices and showed about 6.5% at a $15 in-person ticket and 19% to 25% from a $40 ticket upward in its model. Price your own statements before trusting any number.
Are all debit cards cheap to accept?
No. Federal rules cap the fee on debit cards from large banks, which in the study is 0.05% plus 21 cents with a 1 cent fraud adjustment. Debit cards from smaller banks are exempt from the cap and cost more.
Is dual pricing the same as pass-through pricing?
No. Pass-through pricing changes how you are charged. Dual pricing changes how prices are shown to customers, with a card price and a cash price. Surcharging adds a fee at checkout. Each has its own rules, so ask for them in writing.
What should I ask before leaving a restaurant POS?
Ask what the contract ends with, who owns the hardware, how the menu will be rebuilt, how gift card balances move, who trains staff, and how quickly a person answers the phone when a terminal fails during service.
