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(LB 1.0) Native Ordering - Service Charges (Optional) (Toast)
(LB 1.0) Native Ordering - Service Charges (Optional) (Toast)
Updated over a week ago

Native Ordering - Service Charges (Optional):

Restaurant Partners can choose to assign charges per dining option should they wish to help cover the cost of costly delivery fees, PPE, or expensive paper products.

Native Ordering - Pick Up & Delivery Service Charges - Toast:

Step 1: On the Toast homepage, go to Service Charges under Payments.


Step 2: Click on the Add button and name it as the intended charge (Service Fee, Delivery Fee, Catering Fee, etc.).


Step 3: You have the option to set the charge type according to the preferred way of charging. It can be a Fixed percent (then set the Charge Percent to your preference: 5%, 10%, etc.) or Fixed amount (then set the Charge Amount to your preference: $4, $5, etc.) An optional threshold can also be set.


NOTE: Our API does not support the Toast Apply After Amount Threshold setting.

Step 4: Set the Assign to check owner (Gratuity)? to No, Assign the fee to the restaurant.


NOTE: The assign to check owner setting is very important otherwise checks will not close out properly in Toast and a balance due will be shown.

Step 5: Then for more customization, you can choose if it is taxed and how you want that tax calculated.


NOTE: The Yes taxed or No Taxed setting is typically only applied to Auto Gratuities. Because some employers keep a portion of service charges, the IRS considers automatic gratuities to be revenue for the business and the dollars distributed to staff as non-tip wages. This means that service charges are treated as regular wages for tax purposes.

Step 6: What dining option should it apply to.


NOTE: Setting this to Yes will automatically apply this service charge to any Delivery order. If this service charge is for Take Out or Dine-In orders, select No here. WARNING! Be very careful with this setting it is built based upon the dining behavior and will apply to all orders within that category. You cannot apply a fee to a dining option when delivery fees vary platform to platform. Example: If you have a higher delivery fee for 3P than you do for lunchbox orders you should not select yes because it will apply both fees for the delivery.

NOTE: If you choose to set this setting to yes and share the service charge across multiple dining options it is important that the dining option is also checked off. Example: Processing Fee applies to Takeout and Delivery and has to be checked off accordingly. See screenshot below.


Step 7: Hit Save & Publish.

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