Toss Place to Compensate Franchisees for POS Outages

Toss Place, a subsidiary of Toss, announced it will compensate franchisees affected by recent POS outages with cash payments equal to their estimated revenue losses plus an additional 10%. This move comes as Toss Place faces the challenge of restoring brand trust after rapidly expanding its market presence while providing free terminals at a loss.

On June 28, Toss Place released a statement on its website detailing a comprehensive compensation plan related to the POS disruptions. According to the announcement, the company will calculate the estimated revenue loss by subtracting the actual sales during the outage from the average sales during the same time over the past three weeks. The total loss will be supplemented with an additional 10% as a gesture of apology.

For instance, if a franchise's average sales during the past three weeks were 1 million won and actual sales during the outage were 700,000 won, the estimated loss would be 300,000 won. The franchise would then receive a total of 330,000 won in compensation. New franchisees without prior sales data will receive a flat payment of 50,000 won, while those with estimated losses of 10,000 won or less will still receive a minimum of 10,000 won.

Earlier, some franchisees using Toss POS experienced disruptions in order processing and payments on June 26 during lunch, afternoon, and evening peak hours. Toss Place explained that after the first outage, a surge in requests to retry payments caused additional strain on the server, leading to continued disruptions throughout the afternoon and evening.

Franchise owners expressed relief at the compensation plan and follow-up measures, but many reported significant operational disruptions during peak hours on Friday, unable to serve customers or facing delays in payments. Posts on social media and self-employed communities indicated a loss of trust in Toss, with some franchisees inquiring about terminating their contracts or considering switching to other POS providers.

Industry analysts noted that Toss Place's aggressive growth strategy, which saw its cumulative number of installed franchises exceed 300,000 by the end of March, has not been matched by adequate infrastructure and server stability management. In response to the outages, Toss Place plans to enhance its server overload response systems and reduce reliance on servers for key functions.

A representative from Toss Place stated, "We understand that for store owners, payment processing is crucial to daily revenue and customer trust. We will do our utmost to compensate for actual losses and prevent future occurrences."