Businesses that operate in Canada will want a credit card processor based there and capable of processing both the major international credit card networks and domestic payment options. As a Canadian, you should pick a solution that gives the best overall value for the least cost, whether you choose a locally developed Canadian payment processor or a foreign business that provides Canadian merchant accounts. We’ll examine the top Canadian merchant services companies for small businesses and discuss the country’s payment processing industry below.
What are Merchant Accounts?
To handle credit cards, you must have a merchant account. It is a sort of bank account that receives money from credit card transactions. When you process a credit card, money is sent from your customer’s Visa or Mastercard account to your merchant account.
Daily or weekly, funds are moved from the merchant account to your bank account. Your merchant account provider will determine the fees you pay for every transaction processed.
Choosing the appropriate supplier is critical to obtaining the best pricing. Lower processing fees become increasingly crucial to your organization as the number of credit cards processed increases.
What Should You Consider When Choosing the Right Merchant Account?
Acceptance methods for credit card payments
Payment methods for your company may include recurring billing, invoicing, e-commerce, terminals, mobile, virtual terminals, and API connectivity. You should select a payment processor that accepts the payment methods you require.
Credit card types you wish to accept
You may wish to accept Visa, MasterCard, Debit, China UnionPay, Diners, American Express, JCB, and Discover cards. Some credit card processors accept just specific cards, while others do not take foreign credit cards. You can also accept debit cards.
Merchant account pricing and contracts
Pricing is an essential consideration in payment processing. Pricing varies depending on the size of the firm. Contracts can range from a simple acceptance of conditions to a multi-year agreement.
Customer service
How much does the company carry for its customers? Are they answering your questions? Do they offer help 24/7? The answer to these questions can make or break your decision on choosing the proper merchant account.
The Best Canadian Merchant Accounts
Square
An incredible solution to try out for your card payment requirements is Square. However, switching to a typical credit card processing business would ensure reduced prices and better assistance if you start processing more than $120,000 annually. In addition to higher than usual processing costs, Square’s simplicity of sign-up has certain disadvantages. Many consumers have reported processing with Square without initially being aware of the firm’s rules surrounding sales funding or the kinds of companies allowed to utilize its services to take credit cards.
Pros
- Ideal for small-volume retailers
- No monthly fees
- Huge feature set
- Predictable flat-rate pricing
Cons
- High-risk industries shouldn’t use it
- Issues with account stability
Helcim
Helcim is the best merchant account that’s currently serving Canada. With its headquarters in Calgary, Alberta, Helcim has been offering virtual terminals, internet payment gateways, traditional credit card processing, and mobile payment solutions as of 2009.
The corporation is exceptional among merchant service providers as it makes all its price information available for public viewing on its website. You will only need to negotiate a little to get the best possible bargain for your company because Helcim provides comprehensive pricing disclosures.
Helcim employs interchange-plus pricing, which tacks on a flat fee of.18% to all card-present transactions (while charging.36% for virtual terminal and online purchases). Helcim doesn’t charge statement fees, application costs, PCI compliance fees, or monthly minimum fees.
Additionally, the company rents out terminals monthly rather than locking merchants into lengthy equipment leases. There are no early termination penalties, and the firm provides month-to-month contracts. Helcim provides merchants with round-the-clock assistance and has received many favorable reviews online. Helcim continues to hold an “A+” rating from the BBB.
Pros
- All merchants receive exclusive interchange-plus pricing
- Fantastic customer service
- Billing is monthly with no early termination costs
- A platform for all payments at once
Cons
- Refuses to take on high-risk companies
Clearly Payments
With the lowest costs and top-quality customer service, Clearly Payments strives to be the best payment provider in Canada. The Canadian Code of Conduct for Merchant Services describes its pricing as the most transparent and free of cancellation fees.
Additionally, they were the first in Canada to provide a membership pricing option that allows businesses to receive wholesale prices for payment processing in exchange for a set monthly charge. You can reach their friendly customer service via phone and email. Payments prioritize Canadian, American, and international firms.
Pros
- Excellent client service
- Good choice of terminal
- Interchange-plus & membership pricing
- Pay-as-you-go billing
Cons
- Plans might not be appropriate for low-volume companies
- Monthly fees
Moneris
The biggest payment processor in Canada, Moneris, mainly employs a tiered pricing structure. It’s crucial to keep an eye on the rates. Every year, Moneris is known to raise its prices steadily.
Moneris often offers 3 to 4-year contracts with $250 cancellation penalties. Make sure you carefully read the contract before signing it. Customer help is provided 24/7. However, customers’ main concerns are poor customer service or lengthy wait times to reach someone.
Pros
- Modern POS equipment
- Mobile POS software
- Third-party app integration
Cons
- Monthly equipment fee
- Extra cost
First Data
Hardware terminals are what First Data is renowned for most. Their website does not provide prices. Thus the rates you pay greatly rely on the salesperson you are dealing with.
First Data does offer contract terms and variable cancellation costs. Make sure to give them a thorough evaluation. Customer help is provided around the clock. Customer service issues, billing disagreements, and contract details are the main topics of complaints.
Pros
- Excellent customer service from knowledgeable employees
- They provide numerous resources and tools
- There are multiple complementary services
Cons
- High fees
- A four-year contract containing a liquidated damages clause
Conclusion
Just like finding a credit card processor with a US basis, finding the ideal Canadian merchant account provider for your company can be challenging. Luckily, we did your job, found the best 5 Canadian merchant accounts, and summarized their features in this article. Read it carefully, look at the pros and cons of these five providers, and choose one that will fit your needs and best suit your business and your company.
