How to Get the Best Canadian Merchant Account

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By MerchantGuide

Work with an expert...

Whether you are looking for merchant services in Canada or in the US, accepting credit cards for your business is a necessity.

Let's face one simple truth.

The only reason to have a merchant account is because your customers want to pay you with their credit card.

Regardless of the products or services you provide, for most of us we live in a cash-less society.

The question is not whether or not you have to pay merchant account fees. Rather, it's finding a Canadian Merchant Account provider that can save you from OVERPAYING for a merchant account.

Choosing a Canadian Merchant Account Provider

Though my expertise is focused on payment processing in the US, from time to time folks ask me about accepting credit cards in Canada.

So what can you do?

My advice when it comes to choosing a merchant account provider ultimately involves THREE critical factors:

  1. Know the right questions to ask
  2. Get a number of quotes so you can match up the various offers side by side
  3. And get the facts before signing on the dotted line

To be sure the hardest thing to do is probably the getting a list of of the right questions to ask. And the reason that it's so challenging is because the merchant processing industry had not made it easy for you.

The fee and rate structures are confusing.

For example, many business owners think that you only pay ONE rate to process credit cards.

Well, there are a number of factors that determine how much it actually costs to accept credit cards, including:

  1. How you process the transaction (face to face, online, etc.)
  2. The card type (rewards card, world card, etc.)
  3. And the type of business you have (grocery, pay at pump, hotel, etc.)

So what can you do?

Find a Canadian merchant account provider willing to help you get the best deal by clicking the link today.

I hope you found this short article helpful.

As always, I look forward to hearing your thoughts, feedback or any comments related to merchant account issues.

Comments

Wanda King 9 months ago

I went through the time to compare many quotes of merchant account providers in Canada. I found that of every one I contacted was giving me slightly different pricing structure and equipments options. I was very confused and did not know what to do! They all were not very helpful in answering my questions...

I ended up finding Canada Merchant Solutions and they helped me compare the rates of many processors as opposed to calling them all directly and receiving individual quotes. CMS was able to get me the answers I needed the lowest rates on the market and a brand new POS (EMV chip card compliant) machine all within 3 days.

My advice to any business owner looking for a merchant account in Canada is to find a quoting service or a company that represents the multiple processors. This way you can compare and rest assured you are getting the best deal!

- Wanda

MerchantGuide profile image

MerchantGuide Hub Author 9 months ago

Hi Wanda, thanks for the comment. Yes, you can either deal with one company who represents many providers, or get quotes from a number of providers. Only by talking with more than one company will you be able to find the right merchant account for your needs.

Glad it worked out for you, and thanks again...

Matthew 5 months ago

IMO, every merchant service provider can offer the same rates. Everyone has a cost from Visa / Master card. The issue is that we as "merchants" only look at the discount rates. Smaller merchant service providers use that as an advantage by offering below costs discount rates, but making up for it with leasing terms, setup fees, monthly fees and long contracts.

Do not be fooled by these "white label" companies. In Canada, you should only be dealing with either Moneris, Global Payments, TD merchant services or Chase.

Most of the smaller companies go through the bigger guys to process, so you'll probably see statements from them anyway. You can tell if a merchant service provider is reputable by checking to see if they offer "rent". Only the big 4 will offer rent for their terminals. The other guys will lock you down to 7 year lease contracts & raise your rates over time. They'll say you can cancel your contract anytime, but in reality, your lease contract is with another company. They will charge you a large sum to get out of the lease.

Don't be fooled!

MerchantGuide profile image

MerchantGuide Hub Author 5 months ago

Hi Matthew, thanks for the comment. You're right on when you discuss the issue regarding rates. However, I would say that even the bigger companies raise their rates over time. In fact, unless you have significant processing volume most companies just don't want to offer "competitive rates." And then there is the issue of undisclosed surcharges which are never shown to merchants. Excellent point about early termination fees and credit card terminal leases -- probably the single biggest rip off in the industry.

That said, I would still shop around because many smaller processing companies work hard to keep their merchant clients happy by offering better service. But of course this doesn't always happen.

Thanks again for sharing.

Tom 2 months ago

Great site to go to is feefighters.ca

They will give you a few companies to contact. I would contact the company directly to get a better quote. As well, I'm a victim of a 5 years lease contract. Basically, I paid $3000 for a machine that I could of pay $300-$900 for. The only way to get out of my lease is to transfer it to someone or pay it out.

My recommendation is to rent your equipment so you could upgrade it when a new terminal is out. Usually $30/month for rental. Buy the terminal if you're gonna stay with company for a while but keep in mind that you would have to update to a new terminal every few years or buy a new one if you decide to switch to a new merchant. Rental is probably a better way to go. DO NOT LEASE!

Setup: Watch out for introductory price. Get them to do a demo of your current statement if you have one.

I have a restaurant that does about $80,000 a month on debit/credit card. My current rate are $0.05 for debit, 1.55% for visa and mastercard. Everything else is relative. This is the best rate I got so far.

Tip:

Go to www.bbb.org to check your their rating. Their sales rep is great but their technical service could be brutal. That's the reason why I decide to search for a new merchant provider.

Read your right:

http://www.fin.gc.ca/n10/data/10-049_1-eng.asp

I hate to see merchant taking advantage of business owner as we work very hard to maintain and run our business. Do take the time to read over your contract and select your merchant provider carefully. Hope this helps.

Tom

MerchantGuide profile image

MerchantGuide Hub Author 2 months ago

Hi Tom,

thanks for the comment. You're right on about avoiding the lease (I've written about this elsewhere). And you raise a great point about how the rep might be great but customer service could be awful. Another point is to avoid early termination fees.

And thanks again for sharing...

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    Other Merchant Account Tips...

    There's more to accepting credit cards -- whether you have multiple locations or you own a "mom and pop" business.

    In fact, believe it or not asking "what's your rate?" over the phone is the LAST thing you should be thinking about, because there are multiple rates, fees and other charges depending on your type of business and how you want to accept credit cards.

    Not to mention that quoted rates over the phone are often misleading, or only apply to your business 20% of the time.

    The key?

    To get the best merchant account you need to talk with a solutions provider. You can learn more about merchant processing services by checking out some articles below:

    working