How to issue a refund on Toast
To issue a refund on Toast, open the order in the POS system, select the payment method used, and choose the refund option. Toast will reverse the charge back to the original card or payment account within one to three business days, depending on the customer's bank. The refund appears in your Toast dashboard under transaction history, and you can track its status there.
The exact steps depend on whether you are refunding a completed order, a partial order, or a transaction that has already settled. Toast handles refunds differently for credit cards, debit cards, and third-party payment processors like Apple Pay or Google Pay, though the process starts the same way in every case.
Key Takeaways
- Refunds on Toast are issued through the POS system by opening the original order and selecting the refund option tied to the payment method used.
- Most refunds take one to three business days to appear in the customer's account, though some banks hold the credit for up to five business days.
- Partial refunds are possible on Toast and do not require cancelling the entire order — you can refund individual items or a specific dollar amount.
- Refunds issued after an order has settled may take longer than refunds issued the same day, because they must be processed as reversals rather than voids.
- Toast keeps a record of all refunds in your transaction history, which you can use to track status and reconcile with your bank statements.
Refunding a completed order on the same day
If the order was completed and paid today but has not yet settled (usually before midnight or your batch close time), the fastest refund is a void. Open the order in Toast, find the payment line, and select "Void Payment." Toast will cancel the charge entirely, and the customer will see no charge on their statement at all — there is nothing to reverse because the transaction never left your account.
Voiding works only if the order has not settled. Once Toast has batched and closed the day's transactions (timing varies by your processor and settings, but usually happens between 11 p.m. and 2 a.m.), the order moves into settled status and voiding is no longer an option. At that point, you must issue a refund instead.
Refunding a settled order or partial amounts
Once an order has settled, open it in Toast and select the payment method line. Choose "Refund" or "Issue Refund" (the exact label depends on your Toast version). You will see options to refund the full amount or a partial amount. If you are refunding only some items, enter the dollar amount or select individual line items, then confirm.
Toast will process the refund as a reversal to the original payment method. The customer's bank receives the reversal instruction and credits the account, but the timing depends on the bank, not Toast. Most banks post refunds within one to three business days. Some hold the credit for up to five business days, particularly if the original charge is still pending on the customer's account.
You will see the refund listed in your Toast dashboard under "Transactions" or "Payment History" with a status of "Pending" or "Completed." Pending refunds have been sent to the processor but not yet posted to the customer's bank. Completed refunds have been posted.
Refunds for third-party payment methods
If the customer paid with Apple Pay, Google Pay, or another digital wallet, Toast still processes the refund through the original payment method. The refund goes back to the card or account linked to that wallet, not to the wallet itself. The timeline is the same — one to three business days — because the underlying card issuer controls the posting.
If the customer paid with a gift card or Toast gift balance, the refund is instant. Toast credits the amount back to their gift card account immediately, and they can use it on their next visit. No bank processing is involved.
What to do if a refund is stuck or not showing up
If a refund shows as "Pending" in Toast for more than five business days, or if the customer says they have not received it after a week, check your Toast transaction history for the refund ID. Contact your payment processor (not Toast directly) with the refund ID and the original transaction ID. The processor can tell you whether the reversal was sent to the bank and, if so, when the bank received it.
Some banks delay posting refunds if the original charge is still pending. Ask the customer to check their bank's pending transactions — if the original charge is still there, the refund may be waiting for that charge to post first. Once the charge posts, the refund usually follows within one business day.
If Toast shows the refund as "Failed" or "Declined," the most common cause is an invalid card number or a closed account. In that case, you may need to issue a refund to a different payment method or offer an alternative (such as store credit or a new transaction with updated card details).
Refunds and your Toast reporting
All refunds appear in your Toast sales reports and reconciliation. Refunds reduce your gross sales for the day and are tracked separately so you can see the net amount deposited to your bank account. If you are reconciling Toast with your bank statement, refunds that are still pending will not yet appear as a debit, but they will show in Toast as issued.
Keep the refund ID and the reason for the refund in your records. If a customer disputes the refund or you need to explain a gap between Toast sales and your bank deposit, the refund record is your proof that the transaction was reversed intentionally.
Frequently Asked Questions
Can I refund a customer without opening the original order?
No. Toast requires you to open the original order and issue the refund through the payment line. This creates a record tied to the transaction and prevents duplicate refunds. If you cannot find the order, search by customer name, card number, or date in your transaction history.
What if the customer paid with cash?
Toast does not process cash refunds through the POS system. You must handle cash refunds manually — count out the amount and give it to the customer. Mark the order as refunded in Toast by noting the reason in the order notes or by voiding the order if it has not settled, so your records match your cash drawer.
How long does a partial refund take?
A partial refund follows the same timeline as a full refund: one to three business days for most banks. Toast processes it the same way, just for a smaller amount. The customer's bank still controls when the credit appears on their statement.
Can I refund a customer who paid with a different card than the one they have now?
Yes. Toast sends the refund to the card that was used for the original transaction, regardless of what card the customer has now. If that card is closed or expired, the refund may fail, and you will need to contact your processor to reissue it to a current card.
Do I need to contact Toast support to issue a refund?
No. You can issue refunds directly from the POS without contacting Toast. Contact Toast support only if a refund fails, shows an error, or does not appear in your transaction history after you have issued it.