by Matt Rej
Squirrel Systems is a pioneer in the POS space. They’ve been providing point-of-sale systems for over 40 years, and they’re famously credited with creating the first restaurant touchscreen POS back in 1984.
Despite its age, Squirrel POS has done an excellent job keeping pace with their technology over the years, including a cloud POS solution alongside its on-premise and self-hosted POS systems.
They primarily serve multi-location restaurants, hotels, and hospitality businesses with complex operations. But the best part about Squirrel POS is that it’s largely processor-agnostic, meaning:
- You can keep your own payment processor.
- The POS is independent of your merchant account, so you can negotiate your own rates directly and completely separate from your software license.
- You’re not locked into a proprietary processor or forced to use an in-house payment solution.
Its ability to connect with a wide range of processors also promotes competition, which isn’t always the case in the integrated POS market. So your processor should be more inclined to give you fair rates, knowing they’re not the only game in town.
With that said, I’ve ranked the top processors that integrate with Squirrel POS.
To be clear, I have no affiliation with any of these credit card processors, and we’re not compensated in any way by putting them on this page. This is based purely on our first-hand experience dealing with these providers on behalf of our clients, with the intention of helping you get the best possible rates.
Staying with your existing provider should always be your first priority. But here are some alternatives for those of you starting from scratch.
1. Elavon
Among the cheapest options for high-volume hotels and resorts. But you need to watch out for extra markups on international cards.
Elavon is a traditional acquirer, which means your merchant account gets set up directly with the backend bank instead of a middleman sitting in between.
This setup allows you to negotiate lower rates, and Elavon’s merchant fees have historically been competitive.
One standout of Elavon is that they’re willing to offer rock-bottom pricing to high-volume, low-risk accounts. We have clients paying just a 0.06% markup on roughly ~$2M monthly, which is among the lowest rates you’ll find anywhere.
The biggest drawback of Elavon is that they’re notorious for charging extra on cross-border transactions, which can obviously be a problem for hotels hosting international guests.
Elavon’s International Card Handling Fee can add up to 0.80% to a transaction, on top of interchange and Elavon’s standard markup.
I personally hate this fee because of the way it’s presented. Elavon itemizes the charge as though it’s coming from the networks, which is somewhat deceptive and I think intentionally designed to make you gloss over it.
But if you can negotiate this markup to a more reasonable amount, Elavon is solid elsewhere and pricing is competitive.
2. Shift4
Great for hotels and restaurants alike, as long as you’re on interchange-plus pricing and watch your statements carefully.
Shift4 is another direct acquirer, which works in your favor for the same reason as Elavon. They’re narrowly second on my list only because they tend to have slightly more junk fees.
But Shift4 primarily serves multi-location restaurants, franchises, hotels, casinos, and large hospitality operators. Which directly aligns with Squirrel POS.
And fortunately, the vast majority of Shift4’s junk fees can be eliminated once you identify them on your statements and negotiate them.
When you’re using Shift4 to run credit card transactions it’s almost like a game of cat and mouse. Shift4 is going to try to add fees and pad their margins, which is annoying and can definitely be expensive. But they’re willing to remove those fees when you call them out on it.
The most significant savings with Shift4 come from your pricing structure.
They offer a unique model called simple change pricing, which is pitched hard by sales reps and marketed for its simplicity. But it’s really just a tiered model, though not as obvious because the buckets aren’t labeled in the traditional qualified, mid-qualified, and non-qualified lines you’d typically see from a tiered setup.
If you’re on this, the solution is easy: just move to interchange-plus. Shift4 offers IC+ pricing and will move you if you ask them (though it may take some effort).
3. Moneris
Transparent pricing and competitive rates for Canadian merchants.
Moneris is probably the best credit card processor in Canada when you look at the full package of pricing, transparency, and overall service.
So they’re a good fit with Squirrel POS, which was also founded in Canada and still headquartered there.
In addition to fair pricing, it’s nice that Moneris doesn’t raise rates too often. At least compared to other providers.
One way that Moneris does try to sneak in some extra profits on your account is through equipment leases. So just avoid those pitches from your sales rep and always buy your hardware outright.
You may not even need any physical hardware from Moneris anyway, as Squirrel POS can likely support all of your hardware needs, even if you’re going the cloud POS route.
Also make sure you avoid flat-rate pricing from Moneris.
The IC+ model from Moneris is actually called “simplified pricing.” That’s the setup that gives you wholesale interchange rates and assessments with a transparent markup from Moneris.
To clarify: simplified pricing from Moneris is good, while simple change pricing from Shift4 is bad. Though the names are similar, they’re essentially the opposite of each other.
4. FreedomPay
Gateway and payment middleware that connects your processor to Squirrel POS.
If your existing credit card processor isn’t explicitly listed on the Squirrel POS integration page, then FreedomPay is likely the best way to set up the connection.
What’s different about FreedomPay is that they aren’t actually a payment processor. Instead, they provide a gateway/middleware solution that facilitates the connection between your provider and the POS (in this case, Squirrel Systems).
It’s a great option if you need to facilitate payments across a wide range of channels.
For example, a hotel may require different setups for bookings, its spa, restaurant, sundry shop, adventure rentals (boats, bikes, skis, kayaks, etc.), and so on. The middleware can still support each sales channel between your processor and Squirrel POS.
Some processors that integrate with FreedomPay include:
- Stripe
- Chase Paymentech
- Heartland
- Payroc
- Fiserv
- Nuvei
- TSYS
- Vantiv
So there’s a good chance your provider is supported somewhere.
The drawback is that there’s an added fee compared to a direct connection between your processor and Squirrel POS. But the cost can be justified when you weigh the long-term savings associated with keeping your current provider vs. switching strictly for an integration.
5. Worldpay
Versatile and powerful but expensive.
Worldpay has to be on this list due to its sheer size and capabilities.
And if you’re already using Worldpay, it’s still worth it to keep them when you connect to Squirrel POS.
But I’d honestly avoid them if you’re starting from scratch.
Ever since they got acquired by Global Payments, their pricing tactics have become a lot more aggressive. Even accounts that were previously priced competitively are getting hit with high rate increases and bogus fees. Which is disappointing.
I also don’t think Worldpay is going to make this integration very seamless for you because they have their own POS to push now, specifically Genius for enterprise that is a priority for them to sell. So they’ll likely add integration fees to your Squirrel setup to deter you from going that path.
On the bright side, Worldpay does offer interchange-plus pricing. And as an acquirer, nobody sits in the middle between you in the bank actually processing those transactions.
They’re also willing to negotiate.
So if you start seeing junk fees on your statement or you get a massive rate hike notice, you don’t have to just accept those terms. You can push back, and they’ll usually meet you somewhere in the middle.
6. Cayan
Owned by Global Payments and no longer active for new sign-ups, but still worth keeping and negotiating if you’re already set up with Cayan and integrating with Squirrel POS.
Cayan is a legacy processor that’s essentially been folded into the Global Payments umbrella due to two acquisitions.
TSYS acquired Cayan, and then Global acquired TSYS. And while merchants previously using Cayan may still see that branding used, new accounts are rarely boarded this way.
So this is specific to merchant accounts already using Cayan.
Similar to Worldpay, you’re going to experience less-than-ideal pricing tactics. From junk fees to rate increases and some slight deception on your statements, it’s just one of those things you need to deal with when you’re processing through a Global subsidiary.
7. PayFacto
Canadian payment facilitator for restaurants and hotels. Though I’d only consider it for smaller operators.
PayFacto is different compared to the other options because it’s not a direct acquirer. Honestly, it could potentially be better than Worldpay and Cayan, but the PayFac model is generally worse than a direct acquiring relationship, which is why I’m ranking them last.
As a PayFac, PayFacto doesn’t give you a traditional merchant account.
Instead, you operate as a sub-merchant within its master account. So you don’t have a direct relationship with the acquiring bank.
Large properties or franchise restaurants shouldn’t consider this because the setup is just too costly. It’s another mouth to feed, which always adds to your cost.
And PayFacto relies on a network of ISOs to sell its service too, which could essentially add a fourth player into the mix, taking a cut of your fees.
Final Thoughts
Squirrel Systems is a great option for hospitality merchants seeking an independent POS that integrates with their existing payment processor.
Keeping your POS separate from credit card processing gives you more options and more negotiation leverage with each provider.
Just don’t switch providers to integrate Squirrel POS. Even if your provider isn’t directly named on the integration list, you can just use a gateway that sits in the middle.