SkyTab is a popular point-of-sale solution designed specifically for restaurants. The technology is solid, and they offer a range of different hardware options to support your needs.
But there are several things you should be aware of if you’re using SkyTab or considering this POS system.
Key Takeaways
- If you’re using SkyTab POS, then Shift4 is your payment processor.
- This means you’re subject to Shift4’s rates, extra fees, and contract terms.
- While Shift4 is generally a good processor, they’ve recently increased rates and hit merchants with multiple rounds of annual fees to close out 2025.
- SkyTab is cheaper than Toast, but not quite as feature-rich outside of the payment capabilities.
- You need to monitor your monthly statements closely, as we’ve found billing mistakes resulting in thousands of dollars in overcharges.
Insider Take
I’ve been following SkyTab since it was first developed back in 2019, as we have tons of clients in the restaurant and food service space. Though we didn’t really start seeing it used until mid-2023.
I specifically remember getting an influx of emails about Shift4’s push to onboard new SkyTab users. At the time, they were offering a $5,000 signing bonus for new customers plus $1 per online order received during the first three months of service.
This is probably the best intro offer I’ve ever seen in the processing space, as you were essentially getting several months of free processing. Those types of promotional offers are long gone, and SkyTab has surged in popularity over the last 12-18 months.
In reviewing Shift4’s quarterly earnings calls, it’s clear that SkyTab is a priority for leadership and is still rapidly growing:
- 38,000 new installations in 2024
- 45,000 new installations in 2025
- 1,300+ new international installations per month (as of 3Q25)
SkyTab now represents over 40% of Shift4’s entire merchant base.
While this can be viewed as a positive in the sense that Shift4 is continuing to invest in the technology and releasing new features (like SkyTab Air in mid-2025), it also means that SkyTab POS users are being leveraged as a profit center when Shift4 applies some not-so-merchant-friendly pricing tactics.
A Closer Look at SkyTab POS Pricing
First and foremost, you need to understand that there are two components to SkyTab’s pricing structure:
- Subscription Fee: Starting at $29.99 per month for the hardware and POS software.
- Processing Fees: Charged per transaction, plus other markups imposed by Shift4.
The subscription seems reasonably priced for most businesses (and it’s notably cheaper than Toast’s $69 per month price). And Shift4/SkyTab has done a really good job in marketing this as a “no upfront cost” way to accept payments.
But at the end of the day, this is just an equipment lease that allows Shift4 to charge you ~$360 annually per device for hardware that could be purchased elsewhere for less than $250.
So over the course of five years (average lifespan of POS hardware), you’re overpaying by about $1,500 for each device.
SkyTab’s Processing Fees Explained
This is where merchants really need to pay close attention, as it’s where we find the most instances of overpayments.
SkyTab offers a standard flat-rate pricing model of 2.75% + $0.15 per transaction.
DO NOT ACCEPT THIS OFFER. While this is far from the worst flat-rate offer I’ve seen, it’s still way too expensive.
- Ask for an interchange-plus pricing model instead.
- You’ll pay the wholesale rate from the card networks, plus a small markup to Shift4.
- Shift4 has something called “simple change pricing” that is confusing and not actually an interchange-plus plan.
- Avoid this structure, too. And if you’re already on a simple change plan, you can likely save about 0.25% by switching to a true IC+ model.
We’ve seen Shift4 offer rates as low as 0.04% + $0.04 per transaction to high-volume businesses.
I can’t promise you’ll be offered something that low, especially via SkyTab. But it’s reasonable to aim for something like 0.15% + $0.05 or lower.
Other Fees That Impact Your Processing Rates
Here’s another area where I noticed restaurants using SkyTab tend to overlook.
When I’m talking with owners or CFOs during our initial consultation, they’ll explain that they’re only paying 0.25% + $0.10 per transaction (or whatever rate they negotiated for IC+), plus the $29.99 monthly subscription per device.
But when I run a quick calculation on their effective rate, it’s sometimes as high as 4% or 5%. This is way too high. Here’s why:
- Visa’s restaurant interchange rates range from 2.10% + $0.04 to 2.70% + $0.08 (and 1.19% + $0.10 for debit).
- Mastercard is slightly higher, ranging from 1.85% + $0.10 to $2.00% + $0.10.
- Amex and Discover are in the same ballpark.
- Even if you were paying a really high per-transaction markup through Shift4 (something like 0.50% + $0.15), your effective rate shouldn’t be much higher than 3%.
So where is that extra 1-2% coming from?
Like many processors, Shift4 slips in other fees into your statement that aren’t assessed by the card networks. They’re extra charges that are pure processor markup.
Examples include:
- Amex Support Fee — 0.25% of total American Express volume
- Month End Billing Fee — 0.02% on total monthly volume
- Annual RAF Fee — $325 per device ($975 max)
- Annual Program Fee — $99 per location
- Batch Header Fee — $0.35 to $0.40 per batch
- Premium Support Fee — $50 per month
At first glance, these all sound legitimate and most businesses don’t question them.
After all, if you see something like an Amex Support Fee listed alongside other legit American Express assessment fees on your statement, it’s reasonable to assume it’s a mandatory fee.
But it’s not. None of these are mandatory (only interchange and assessments are).
When you add all of these up, it can easily cost you thousands of extra dollars every month.
SkyTab POS vs. Toast
Whether you’re just getting started with payment processing or you’re already set up with one of these providers, most restaurant businesses are comparing SkyTab and Toast.
Of all the restaurant-specific POS tools on the market, these two are the most similar and are each other’s biggest competitors.
I have dozens of clients using each one. And I’ve personally audited hundreds of statements from both of these providers. I’ve also spent hours on the phone and exchanging emails with reps from both SkyTab and Toast.
Here are my thoughts on these two head-to-head:
- SkyTab is definitely a cheaper overall option out-of-the-box.
- In terms of payment acceptance capabilities, neither has an edge.
- Toast has more robust “all-in-one” management features beyond payment processing for big-picture operations.
- SkyTab is arguably simpler and prioritizes customer-facing payment features.
Another thing that most people don’t realize is that there are major fundamental differences between how SkyTab and Toast process payments.
SkyTab POS is an integrated processing solution powered by Shift4 on the backend. SkyTab is the hardware/software, and Shift4 is the payment processor (acquiring bank). Even though everything is coming from the same parent company, that’s the arrangement here.
Toast is PayFac (payment facilitator). They don’t actually process payments. Instead, they work with other acquiring banks on the backend and take a cut of the markup.
That’s why it’s much harder to get interchange-plus pricing via Toast. And if you do get it, the rates will likely be higher than SkyTab because Toast is effectively a middleman in the transaction.
Don’t Switch From SkyTab to Toast or From Toast to SkyTab
For the majority of businesses, SkyTab is better than Toast. But this really only applies to new restaurants that are picking a payment processor for the first time.
If you’re already set up with SkyTab or Toast, don’t switch.
In terms of payment functionality, both systems are virtually identical. So the only reason why businesses consider the switch is to save money. But that likely won’t happen.
Switching costs aside, any short-term savings will likely be erased within a year or two.
Toast executives have publicly announced on earnings calls that they plan to implement small targeted price increases over time. So if you’re considering the switch to Toast, you can expect to be hit with a rate increase at least once per year.
SkyTab/Shift4 isn’t quite as aggressive. But we still saw multiple increases applied in 2025, and I’m expecting similar rate hikes in 2026.
In payment processing, the devil you know is often better than the devil you don’t. You’re much better off sticking with either SkyTab or Toast (whoever you’re already using) and just negotiating better terms directly with that provider.
What Else to Know About SkyTab POS
You need to read your monthly processing statements line-by-line and really analyze what you’re being charged. I say this for every processor, but it’s even more important with SkyTab because Shift4 is handling things on the backend.
And unfortunately, we’ve caught some mistakes when auditing Shift4 statements on behalf of our clients.
In one particular instance, Shift4 mis-calculated a CNP surcharge for a client, which resulted in a $2,235 overcharge in a single month. This would have cost the business over $25,000 annually had we not caught and rectified it.
You can look at my Shift4 review where I break down the math on this and how we found the error.
These types of mistakes don’t just happen once. So if another business was affected by something like this, then it can definitely happen to you.
Here’s the crazy part. Of the literally hundreds of billing errors I’ve personally found on statements just last year alone, not a single one was in favor of the merchant. These “mistakes” always resulted in the business paying more to the processor.
This isn’t just for SkyTab/Shift4. It’s an industry-wide problem. And it happens so frequently that it’s hard to just write it off as an honest mistake.
Final Thoughts
SkyTab POS is a good option for any restaurant, bar, or food service business that needs to accept credit cards. So if you’re just starting out, go for it, and don’t think twice (just keep an eye on your statements).
But if you’re already set up with another system (like Toast), just stick with your current provider. Switching likely won’t save you money in the long run, and it may end up being more expensive.
While I don’t love that SkyTab essentially forces you into an equipment lease, I can look past that drawback if you’re able to negotiate a competitive interchange-plus contract without tons of extra random fees applied to your account.
It’s totally doable. You just need to work a bit harder and know what to ask for.