TORO POS vs Clover for Tobacco Shops
Why tobacco retailers are switching from Clover to TORO
Critical Issues: Account Shutdowns & Discontinued Features
Clover (owned by Fiserv/First Data) classifies tobacco as "high risk" and regularly shuts down tobacco merchant accounts. When this happens, they can hold your funds for 90+ days while your business loses payment processing. This is why many tobacco shops are abandoning Clover for tobacco-specific solutions.
Important:Clover is primarily a transaction processing system, not a full inventory management platform. In 2023, Clover restricted their built-in loyalty program (Clover Rewards) for tobacco merchants due to PACT Act/SHAFT Act compliance pressures. Tobacco shops can no longer use Clover's native rewards features and must rely on third-party apps like bLoyal or CSI Works for customer loyalty.
Choose TORO If...
- Sell tobacco as your primary business
- Cannot risk account shutdown and frozen funds
- Sell cigars in multiple pack sizes
- Do $30,000+ per month in sales
- Want support from tobacco experts
- Value payment processing security
Choose Clover If...
- Tobacco is a small part of your sales mix
- You want sleek, modern hardware
- Cloud-based management and mobile app are priorities
- You want a large third-party app marketplace
- You are comfortable with Fiserv/First Data's tobacco policies
3-Year Cost Comparison
Real total cost for a tobacco shop doing $50,000/month in credit card sales
| Cost Category | Clover | TORO |
|---|---|---|
| Upfront Cost | $0Hardware purchased separately | $5,000 |
| Monthly Software (36 mo) | $538 - $2,336$14.95-64.90/mo x 36 | $4,284$119/mo x 36 |
| Processing Fees (36 mo) | $41,4002.3% x $50k x 36 | $36,0002.0% x $50k x 36Or $0 with fee pass-through* |
| Hardware | $799 - $2,398Clover hardware (separate purchase) | $1,200Touchscreen terminal |
| Total 3-Year Cost | $42,737 - $46,134 | $46,484Or $10,484 with fee pass-through* |
*Fee pass-through = customers pay credit card fees, you pay $0 in processing costs
Save Up to $35,650 With Fee Pass-Through
Plus: TORO uses tobacco-friendly processing -- zero risk of account shutdown
Card-Not-Present Rate Comparison
Phone Orders Cost You More With Clover
Clover CNP Rate
3.5% + 10c
Per phone/mail order transaction
TORO CNP Rate
2.0%
Same rate as in-store
Annual Savings on $10k/month Phone Orders:
$1,800/year
Clover charges $4,200/year, TORO charges $2,400/year
No Price Increase Since 2013
TORO launched in 2013 at $5,000 + $119/month.
That's still our price today. Zero increases in 13 years.
When was Clover's last price increase? Ask them.
Feature-by-Feature Comparison
Account Shutdown Risk
HIGH RISK. Fiserv/First Data classify tobacco as prohibited. Regular account terminations. Funds held 90+ days. Often no warning. This is the most common complaint from tobacco shops using Clover.
Your payment processing can disappear overnight
ZERO RISK. Uses Premium Tobacco Processing - PCA-recommended processor that specializes in tobacco. No surprise shutdowns, no held funds, no risk.
Sleep easy - your processing is safe
Multi-Pack Inventory
Not supported. Clover is primarily a transaction processing system, not a full inventory management platform. Must create variants for each pack size. Breaking up boxes requires manual inventory adjustments. Leads to inventory inaccuracy.
Transaction-focused, not inventory-focused
Built-in. One product, sell at any level. Buy a box of 25, sell 3 singles and a 5-pack - inventory automatically shows 17 remaining. Perfect accuracy.
Built specifically for cigars
Age Verification
Optional prompt. Can set up age verification but staff can skip it. No automatic enforcement. Relies on employee diligence.
Better than nothing, not mandatory
Mandatory enforcement. Tobacco transactions cannot complete without ID verification. Set age limits (18/19/21+). Staff cannot bypass. Protects your license.
Non-bypassable compliance
Support
Generic retail support. Phone support available but don't understand tobacco. Long wait times. Support staff have no tobacco experience.
Ask about cigars, get blank stares
Tobacco expert support. Unlimited phone/email/remote support from people who run tobacco shops. We know how to handle cigars in cello with no barcode. Free training included.
Real tobacco knowledge, real help
Platform
Modern hardware. Sleek terminals, cloud-based, mobile app for management. Works on Clover devices. Nice-looking hardware.
Great platform and design
Windows PC only. Local installation, not cloud-based. Works fully offline. Less flexible platform but more reliable.
Platform limited but dependable
What Clover Does Better
- Modern hardware: Sleek, professional-looking terminals
- Cloud platform: Manage from anywhere via mobile app
- Integrated payments: Hardware and processing in one package
- App marketplace: Lots of third-party integrations
What TORO Does Better
- No shutdown risk: Tobacco-friendly processing, your funds are always safe
- Multi-pack inventory: Sell cigars at any level, inventory stays accurate
- Lower processing rates: 2% vs 2.3% saves $1,800/year on $50k/mo
- Fee pass-through option: Pass fees to customers = $0 processing cost
- Tobacco expert support: Help from actual tobacco retailers
- Built for tobacco: Every feature designed for tobacco retail
6 Questions to Ask Clover
Before choosing Clover, ask them these questions directly:
- What is your exact in-store processing rate?(Varies by merchant, ask for YOUR rate)
- What is your card-not-present rate?(Typically 3.5% + 10c for phone/mail orders)
- What is your online e-commerce rate?(Ask for the exact rate)
- Do you make money from processing margins?(Yes - they mark up processing rates)
- When was your last price increase?(Ask for their pricing history)
- What is Fiserv/First Data's policy on tobacco merchants?(Ask about shutdown risk directly)
If they won't answer these questions clearly, that's a red flag.
The Bottom Line
Clover looks great until they terminate your account.
The shutdown risk alone makes Clover a dangerous choice for tobacco-focused businesses. Even if you save a few hundred dollars per year in software fees, one account termination that freezes $20,000 in funds for 90 days will devastate your cash flow. Plus you're using a system that requires workarounds for basic tobacco operations like multi-pack inventory.
Compare TORO to Other POS Systems
Switch from Clover to TORO
Many tobacco shops are switching from Clover before they get shut down. See how TORO eliminates the shutdown risk while saving you money.