Industry Average Calculation

How we calculate “Industry Average” when tobacco POS companies won’t publish their rates

The Transparency Problem

Most tobacco POS companies don’t publish their credit card processing rates. They say “contact for quote” or provide nothing at all.

We believe that’s a red flag. If a company won’t tell you their rates publicly, what else are they hiding?

As tobacco retailers ourselves, we find this frustrating. Credit card processing is often your largest ongoing cost – way more than software fees. You deserve to know these costs before signing a contract.

So when we compare TORO to competitors who hide their rates, we calculate an “Industry Average” based on the companies that ARE transparent. Here’s how:

Our Calculation Method

Step 1: Identify Companies with Published Rates

Company In-Store Rate CNP/Online Rate Source
TORO POS 2% avg (1.8-2.2%) 2% (same rate) Published
Square 2.6% + 10¢ 3.5% + 15¢ Published
Clover 2.3% + 10¢ 3.5% + 10¢ Published
CigarPOS Not published Not published Hidden
Fastrax Not published Not published Hidden
Lightspeed Not published Not published Hidden

Last updated: February 2026. If you represent one of these companies and we have your rates wrong (or you’ve published them since we last checked), please email thrive@torocigarpos.com and we’ll update immediately.

Step 2: Calculate Industry Average

We exclude TORO from the average (we’re comparing TO us) and calculate based on published rates:

In-Store Processing:

Square: 2.6% + 10¢ ≈ 2.7% effective
Clover: 2.3% + 10¢ ≈ 2.5% effective
Industry Average: 2.6%

Card-Not-Present / Online:

Square: 3.5% + 15¢ ≈ 3.6% effective
Clover: 3.5% + 10¢ ≈ 3.6% effective
Industry Average: 3.6%

When We Use “Industry Average”

When comparing TORO to companies that don’t publish rates (CigarPOS, Fastrax, Lightspeed, etc.), we use the Industry Average calculated above.

We always make it clear when we’re using an estimate:

  • We state “Industry Average (not published by [Company])”
  • We link to this methodology page
  • We note that you should ask them directly for their actual rate
  • We invite the company to correct us if our estimate is wrong

The lack of published pricing itself is a red flag. If they won’t tell you their rates publicly, ask yourself why.

Questions to Ask ANY POS Company

Before signing with any tobacco POS system, ask these questions:

1. What is your exact in-store processing rate?

Not “competitive” or “as low as” – the actual rate you’ll pay.

2. What is your card-not-present rate for phone orders?

If it’s higher than in-store, ask why and how much higher.

3. What is your online e-commerce processing rate?

Again, if higher than in-store, ask why.

4. Do you make money from processing margins?

Are they incentivized to keep your costs high?

5. When was your last price increase?

TORO hasn’t raised prices since 2013. Can they say the same?

6. Why aren’t your rates published on your website?

What are they hiding?

TORO’s Transparency Commitment

Our Published Rates:

  • Software: $5,000 + $119/month (see pricing page)
  • In-Store Processing: 2% average (1.8-2.2%)
  • Card-Not-Present: 2% (same rate – no markup)
  • Online/E-commerce: 2% (same rate – no markup)
  • Last Price Increase: Never – same price since 2013

We’re tobacco retailers. We built TORO because generic POS systems didn’t work for our own stores. We price it the way we wish others priced theirs: transparently.

If you catch us being anything less than completely transparent, call us out. Email thrive@torocigarpos.com.

See Real Costs, Not Sales Pitches

Compare TORO’s published rates to industry averages and see the difference transparency makes.