How to Switch Payment Processors Without Changing Your POS

Switching payment processors should be one of the simplest cost-saving decisions a hospitality venue can make. Compare rates, pick the better option, make the change.

But for thousands of Australian restaurants, cafes, and bars, it's not that simple, because their POS system only works with one processor.

This article explains how to switch payment processors without replacing your POS system, what the process actually involves, and what to do if your current POS has you locked in.

The short version: If your POS system supports multiple payment processor integrations, switching processors takes one to two hours with zero business disruption. If your POS locks you into a single processor, you'll need to change your POS system first, but the processing savings typically pay for the new system within 12 to 18 months.

Why Would You Switch Payment Processors?

Most hospitality operators don't think about their payment processor until something prompts them to. Usually it's one of these situations.

Your processing fees are higher than they should be. You've spoken to another operator, looked at competitor rates, or had a processor approach you with a better offer. You realise you're paying 0.5% to 1.0% more than you need to, and on $50,000 a month in card revenue, that's $3,000 to $6,000 a year walking out the door.

Your business has grown. When you first signed up, your transaction volume was lower and your rate reflected that. Now you're processing significantly more, but your rate hasn't changed. Higher volume gives you stronger negotiating power, and a different processor might offer a better deal for your current level.

Your processor's service has declined. Settlement times have slowed, reporting is inadequate, customer support is unresponsive, or terminal reliability has dropped. Processing isn't just about the rate, it's about the service that comes with it.

A new processor has entered the market. Australia's payment processing market is competitive and evolving. New entrants regularly offer attractive rates to win hospitality business, and existing processors adjust their offerings in response.

Your contract is expiring. If you're on a fixed-term contract with your current processor, the renewal period is the natural time to evaluate alternatives.

In all of these situations, the ability to switch processors quickly and without disruption is valuable. The question is whether your POS system allows it.

Can You Switch Processors With Your Current POS?

This is the first and most important question to answer. Not all POS systems treat payment processing the same way.

Independent POS Systems

An independent POS system separates your point of sale software from your payment processing. The POS integrates with multiple processors, and you choose which one to use. Switching means changing the integration settings, not replacing the system.

With PowerEPOS, for example, you have access to over 15 integrated payment processors including Tyro, Zeller, Zero Payments, Linkly, Westpac, ANZ, NAB, CBA, Zero Payments, Qlub, and more. Switching between any of them requires no new POS hardware, no software changes, and no staff retraining on the POS itself.

If you're on an independent POS, you can skip ahead to the step-by-step switching process below.

Embedded POS Systems

An embedded POS system bundles the point of sale software and payment processing together. The POS provider is also your processor, or they mandate which processor you must use. Switching processors means replacing your entire POS system.

If you're on an embedded POS, you have two options: stay and accept the rates you're given, or switch to an independent POS that gives you processor freedom. The second option costs more upfront but, as covered in our embedded vs independent POS comparison, typically saves $20,000 to $30,000 over five years for a standard two-terminal restaurant.

How to Check Which Type You Have

Ask your POS provider these two questions:

1. "Can I use a different payment processor with this POS system?"
2. "If I switch processors, do I need to change any POS hardware or software?"

If the answer to the first question is no, or the answer to the second is yes, you're on an embedded system.

How to Switch Payment Processors: Step by Step

If you're on an independent POS system like PowerEPOS, here's what the switching process looks like in practice.

Step 1: Understand Your Current Costs

Before approaching new processors, gather your current processing data. Pull your most recent processor statement and note your total monthly card revenue, your effective processing rate (total fees divided by total card revenue), your card type breakdown (debit, credit, international, premium), and your current contract terms including any notice periods or exit fees.

This data is your negotiating foundation. Without it, you're comparing quotes in the dark.

Step 2: Get Competitive Quotes

Approach two or three payment processors with your data. For Australian hospitality venues, Tyro, Zeller, Zero Payments and your existing bank are good starting points.

When requesting quotes, provide your monthly card revenue, your card type mix, and your current rate. Ask each processor for their rate based on your specific volume, not their published rate card. Published rates are starting points, not final offers.

Ask about settlement speed (next-day vs two to three days), contract terms (month-to-month vs fixed term), terminal costs (included, rental, or purchase), and any additional fees (monthly account fees, chargeback fees, PCI compliance fees).

Step 3: Compare Total Cost, Not Just the Rate

The headline processing rate isn't the full picture. A processor offering 1.4% with a $50 monthly account fee and two-day settlement might cost more overall than one offering 1.5% with no monthly fee and next-day settlement.

Calculate the total monthly cost for each option: (monthly card revenue × processing rate) + any fixed monthly fees. Then factor in settlement speed, which affects your cash flow, and contract flexibility, which affects your future options.

Step 4: Give Notice to Your Current Processor

Check your current contract for notice periods. Some processors require 30 days notice, others require 90 days. Some have early termination fees if you're mid-contract. Factor these costs into your switching calculation, though for most venues the ongoing savings far outweigh any one-off exit costs.

Step 5: Set Up With Your New Processor

Your new processor will provide you with a merchant account and payment terminal. Setup typically involves completing a merchant application (business details, bank account for settlement), receiving and installing the new payment terminal, and configuring the terminal with your merchant credentials.

Most processors can complete this within one to two weeks from application.

Step 6: Configure Your POS Integration

This is where the switch happens. With an independent POS like PowerEPOS, your POS technician or support team updates the payment integration settings to connect to your new processor. No POS hardware changes. No software reinstallation. No menu or reporting changes.

With PowerEPOS, this configuration takes approximately one to two hours. Many venues complete it between service periods, for example between lunch and dinner, so there's zero impact on trading.

Step 7: Test and Go Live

Before your first live service with the new processor, run a few test transactions to confirm everything is communicating correctly. Process a sale, process a refund, check that receipts print correctly, and verify the transaction appears in your new processor's reporting portal.

Once confirmed, you're live. Your staff won't notice any difference in their POS workflows. The only change is behind the scenes, where your transactions are now routing through your new, more competitive processor.

What Happens to Your Data When You Switch?

A common concern is losing transaction history or reporting data when switching processors. Here's what actually happens.

Your POS data stays exactly where it is. Your sales reports, product mix data, staff performance tracking, customer records, and all other POS data is stored in your POS system, not in your payment processor. Switching processors doesn't touch any of this.

Your processor transaction history stays with your old processor. You'll still have access to historical transaction data, settlement reports, and statements from your previous processor for the period you were with them. Most processors retain this data for several years.

Your new processor starts fresh. Transaction history with your new processor begins from your go-live date. There's no migration of transaction data between processors, but since your POS retains all sales data independently, you have a complete picture across both periods.

How Long Does the Whole Process Take?

The timeline depends on your starting point.

If you're already on an independent POS:

• Getting quotes: 1 to 2 weeks
• New processor account setup: 1 to 2 weeks
• POS integration switch: 1 to 2 hours
• Total: 2 to 4 weeks, with zero business disruption

If you need to switch from an embedded POS to an independent POS first:

• Choosing and ordering new POS: 1 to 2 weeks
• Hardware delivery and configuration: 1 to 2 weeks
• Installation and staff training: 1 to 2 days
• Processor setup and integration: 1 to 2 hours
• Total: 3 to 5 weeks, with minimal business disruption

In both scenarios, the actual moment of switching, where your venue transitions from one processor to another, takes one to two hours and can be scheduled during a quiet period.

Real-World Example

For example, if a restaurant group processing approximately $50,000 per month through an embedded POS system at an effective rate of 2.6%, wanted to switch to a more competitive processor, they couldn't because their POS only worked with its own payment processing.

If they made the decision to switch to PowerEPOS, it would give them access to over 15 processor integrations. They could then choose the best processor and the best rate. 

The processor switch itself would take 1.5 hours and staff would be comfortable with the new POS within two hours of training. The changeover could be completed between lunch and dinner service with zero disruption to customers.

Then their annual processing fees woudl drop from $15,600 to $9,000, a saving of $6,600 per year. The cost of the new POS system would be recovered within the first 12 to 18 months through processing savings alone. And then, if a better processor option emerges in the future, they can switch again in a couple of hours without touching their POS.

What If Your Processor Offers to Match?

When you notify your current processor that you're leaving, they may offer to match or beat the new rate to keep your business. This is worth considering, but keep a few things in mind.

Check whether the matched rate is permanent or temporary. Some retention offers are introductory rates that revert after six or twelve months.

Consider why you're switching. If the reason is purely rate-based, a genuine permanent rate match could be worth accepting. If the reason includes service quality, settlement speed, or contract flexibility, a rate match doesn't address those issues.

Remember your future leverage. If you're on an independent POS, you can always switch again. Accepting a retention offer doesn't lock you in. If you're on an embedded POS, accepting a rate match keeps you locked into that system, which means you lose the ability to switch if the matched rate expires or a significantly better option emerges later.

Frequently Asked Questions

Can I switch payment processors without changing my POS system?

Yes, if your POS system supports multiple processor integrations. With an independent POS like PowerEPOS, switching processors takes one to two hours and requires no POS hardware or software changes. If your POS is an embedded system that only works with one processor, you'll need to switch POS systems first.

How long does it take to switch payment processors?

The processor switch itself takes one to two hours with an independent POS. The full process, including getting quotes, setting up with the new processor, and configuring the integration, takes two to four weeks. There is zero business disruption during the actual switch.

Will I lose my sales data if I switch processors?

No. Your sales data, reports, product mix, staff performance, and all other POS data is stored in your POS system, not your payment processor. Switching processors does not affect any of this data. Your historical transaction data from your previous processor also remains accessible through their portal.

Does switching processors cost anything?

Check your current processor contract for early termination fees or notice period requirements. Some processors charge exit fees if you're mid-contract. With an independent POS, the switch itself has no cost from the POS side. Any one-off exit costs are typically recovered quickly through lower ongoing processing fees.

How much can I save by switching processors?

Savings depend on your current rate, your volume, and the rate you negotiate with your new processor. A venue processing $50,000 per month that reduces their rate from 2.6% to 1.5% saves $6,600 per year. The higher your volume, the larger the saving.

Can I switch back if the new processor doesn't work out?

Yes, with an independent POS you can switch processors as many times as needed. The process is the same each time: one to two hours to reconfigure the integration, no POS changes required.

Take the First Step

If you're paying more than you should in processing fees, the path forward depends on your current POS setup.

If you're on an independent POS, start by getting competitive quotes from two or three processors using your current transaction data. The switch is straightforward and the savings start immediately.

If you're on an embedded POS, the first step is evaluating whether the long-term processing savings justify switching to an independent system. For most venues processing $20,000 or more per month, they do.

Want help figuring out your next move? Call us on 1300 784 666 or contact us and we'll help you understand your current costs and what you could save. No obligation, just useful numbers.

If you're seeking a quality, Australian-made and supported Point of Sale solution for your hospitality or retail business, look no further than Triniteq.

Our innovative technologies and high-quality service are designed to simplify operations, enhance customer experience, and make you more money.

Discover our range of products and services today.

If you're new to Triniteq and PowerEPOS, our new cloud-hybrid POS system, contact us for more info.

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