Online sales are increasing every year. With Canada being such a big market, you can't afford to ignore its e-commerce potential. However, payment processing in Canada is a bit of a mystery to most people. In this article, we will help you understand the basics of how payment processing in Canada works and what you need to know when selecting a payment processing company for your business.

Rules for Payment Processing in Canada

Before we dive any deeper into this topic, we need to discuss the laws and regulations of payment processing in Canada. Payments Canada lays out the by-laws, rules, and procedures for payment processing in Canada. Merchants are required to follow this set of rules. 

‍

When choosing a company for payment processing in Canada, ensure they follow this set of rules. If you choose Penni Payments, you can rest assured that we comply with Payments Canada’s standards.  

‍

Debit Cards

Debit cards are the highest used payment method in Canada. Therefore, your business needs to know how payment processing in Canada works for debit cards. 

‍

Debit card payments are processed via Interac. This means when a consumer makes a purchase using their debit card, it will be processed as an Interac debit transaction.

Credit Cards

Credit cards are the second highest payment method in Canada. These payments are processed through credit card networks (for example MasterCard, Visa, and American Express).

‍

When choosing which credit cards to accept in your business, the interchange fee should be taken into consideration. Here is a quick breakdown of the interchange fee:

‍

• The fee is the cost of using the credit card’s network.
• It is a % of the credit card sale amount.
• The fee varies between credit card providers and countries.

‍

 In general, the fancier and more exclusive the credit card, the higher the interchange fee. 

The Next Steps

Proper payment processing is one of the most important aspects of business is getting paid. Whether you're a small company or a large one, you need to be able to accept payments in order to keep your doors open. For many businesses, payment processing can be the most challenging part of their operations.

‍

That's why we created Penni Payments. Not only do we make it easy for you to accept payments, but we also guarantee the lowest rates for payment processing in Canada. Contact us today to find out what we can do for your business!

‍