Entrepreneurship & Small Business

Canada, credit card processing online and mobile?

  • Last Updated:
  • Sep 10th, 2018 3:05 pm
[OP]
Newbie
Nov 25, 2017
2 posts

Canada, credit card processing online and mobile?

Does anyone have any experience with choosing credit card processing companies like Bambora (formerly Beanstream) and Moneris or others? I am a Canadian small business doing mainly e-commerce and festival sales. If anyone has checked them out, how do their fees compare? Any companies to avoid?
9 replies
Deal Addict
Jul 3, 2017
3012 posts
2049 upvotes
You can reduce the percentage fee you pay if you maintain sufficient volume with one of the big processors like Moneris, but they can be difficult to deal with for small business. Generally you require a high volume to cover their up-front costs and minimum fees and begin see a net benefit.

Most of the small-business processors are pretty similar, charging about double the percentage fee of the big high-volume processors (usually something like 2.9%). That may or may not be a critical factor you.

A lot of small businesses use Stripe for online credit card payments, and Square for mobile.

We haven't had too many problems with Stripe. The handle both CAD and USD transactions, and they now allow you to create and send your own customer invoices from their site. But they take a week to pay.

The one I always hear lots of complaints about is Paypal, mostly that they often take arbitrary unjustified actions and they are unresponsive to complaints.
Jr. Member
May 21, 2015
125 posts
23 upvotes
Vancouver
look at costco rates, they are good. I use paypal and their fees USED to be low but now they're quite high so I'm open to options. Our volume is the highest tier and they still won't give us a better rate. basically being canadian is the reason for it, if I was in USA my rates would be 1.9% vs 2.9% plus $0.30 per transaction.
Jr. Member
Feb 18, 2014
196 posts
30 upvotes
Bambora rates will be comparable to Stripe, but with monthly recurring fees. As such, wouldn’t recommend that route. If your volumes are north of about 4K / month, go with a “regular” processor. If under that mark, Stripe would likely be the most cost effective.
Newbie
Sep 9, 2006
44 posts
30 upvotes
+1 on checking out Elavon Canada through Costco. Most setup & fees are waived if you have a Costco Executive membership

Online processing:
$149 setup fee, $8/mo
2.07% credit card fee (can be higher if it's a super high rewards card)

Depending on your volume, you might find it better/easier to go with stripe at 2.9% + $0.30/transaction. For our volume Elavon saved quite a bit.

For in person/mobile we got a Poynt terminal from them. (had been using square)
Can buy it at $750 or rent at $59/month if your festival stuff is seasonal. We have a two month window that we need physical POS so we rent.
No setup fee, no monthly.
cut n paste from their email to me:
  • Pin Debit: $0.06
  • Retail Visa & Master Card Qualified: 1.56%
  • Rewards/ Commercial cards: 1.99%
  • Manual Key Entry card not present: 2.07%
  • VISA ASSESMENT FEE : 0.09% & MASTERCARD ASSESSMENT FEE: 0.1% (these are industry wide)
  • CROSS BOARDER FEE: 0.45%
  • SUPER PREMIUM HIGH SPEND CARDS ARE QUALIFIED 2.4% AND NON QUALIFIED ARE 2.9% (your Amex &/or black/actually made of gold type cards)
Newbie
Aug 26, 2018
8 posts
Visa qualified is 1.42%
Mastercard qualified is 1.38%
Commercial cards at 2%
manual entry add 0.1% to above rate
assessment fee is 0.09% (Visa) and 0.1% (Mastercard)
Super premium high spending cards still wont be as high as 2.4%.

Non-qualified add 0.2% to above rates.
Jr. Member
Feb 18, 2014
196 posts
30 upvotes
IGPayment wrote:
Aug 27th, 2018 10:08 pm
Visa qualified is 1.42%
Mastercard qualified is 1.38%
Commercial cards at 2%
manual entry add 0.1% to above rate
assessment fee is 0.09% (Visa) and 0.1% (Mastercard)
Super premium high spending cards still wont be as high as 2.4%.

Non-qualified add 0.2% to above rates.
MasterCard Interchange for Domestic Electronic is 1.44%. 1.38% is for Everyday Spend. Based on OP's business description, they would not be considered an Everyday business.

As well, MasterCard Elite Standard and MasterCard World Elite Standard come in at 2.29% and 2.79% respectively. Add assessment and markup and you are over 3% for those cards...
Newbie
Aug 26, 2018
8 posts
Thank you for quoting me.
I am suggesting posting visa MasterCard interchange fee document instead.

Depends on your markup, 2.29% card won’t reach 3% under my care.
gamechanger wrote:
Aug 28th, 2018 2:50 pm
MasterCard Interchange for Domestic Electronic is 1.44%. 1.38% is for Everyday Spend. Based on OP's business description, they would not be considered an Everyday business.

As well, MasterCard Elite Standard and MasterCard World Elite Standard come in at 2.29% and 2.79% respectively. Add assessment and markup and you are over 3% for those cards...
Member
May 14, 2012
366 posts
74 upvotes
MARKHAM
Would definitely recommend Stripe. Easy to setup and lots of 3rd party support.

Especially it's token based so you won't need to be PCI Compliance.
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