February 9, 2021 Blog, Toronto, Canada

Online Payment Solutions in Canada

One of the most important decisions when starting your e-commerce business is which online payment processor to use. The payment solution you decide on should be reliable. The checkout process is a significant factor in selling your products.

There is a wide array of payment solutions serving businesses in North America – and we’ve got all the information below for you to make the best choice. That said, let’s examine what online payment processing solutions are available at your disposal.

Top online payment solutions

Stripe, PayPal, Bambora, and Moneris are some of the most recognized and trustworthy payment solutions available. Let’s discuss why these online payment processors rank as the best in the region.

Stripe

Stripe is a simple payment processor that is used by many e-commerce businesses. Stripe is used by Pinterest, Blue Apron, and Lyft. Start-ups and small businesses usually prefer Stripe due to the simple fee structures and the various features offered. The Pay-As-You-Go plan charges if a sale is processed. This eliminates all other hidden charges, and no setup is required.

Stripe helps businesses that are just starting by not requiring any contracts or monthly fees. The structure offers simplicity by providing clear and upfront pricing, enabling you to plan and manage your costs. The payment methods offered include Amex, Mastercard, and Visa. You can also customize your checkout forms to suit the design of your website with Stripe.

PayPal Standard/PayPal Pro

PayPal is a popular payment service for sending, accepting, and paying money online. Two options are offered for e-commerce payments, called PayPal Standard and PayPal Pro.

PayPal Standard payments through debit or credit cards, as well as through funds in PayPal. The standard service is the most simple PayPal option. Much like Stripe, you will only receive a charge when you make a sale, and there are no monthly fees or setup required.

The only thing to keep in mind when using PayPal Standard is that customers are required to checkout on a PayPal page and not on your website’s checkout page.

PayPal Pro accepts payments directly on your site. PayPal Pro is a customizable payment solution that provides a more straightforward checkout process for customers. An additional feature is PayPal’s virtual terminal can accept payments over the phone.

Bambora (formerly known as Beanstream)

Bambora, known as Beanstream before, is a popular payment solution among small to medium e-commerce businesses in Canada. Bambora’s month-to-month contracting combined with the competitive price rates are an attractive online payment solution for e-commerce businesses of any size. There are various payment options for your customers, such as debit or credit cards, digital wallets, and direct payment options such as EFT and ACH.

Moneris is more traditional when it comes to payment processors. They have POS equipment and card processors available for physical stores. A Moneris Gateway is available for e-commerce businesses and can either be directly placed on your website or serve as a hosted payment page.

Moneris Gateway has a vault feature to keep track of customer data, shopping cart integration, tokenization for PCI compliance, and security.

Benefits comparison

We’ve summarized the most salient benefits of each online payment processor available to businesses in the region. Here they are as follows:

Stripe

  • Fixed rates apply to all payment methods.
  • Local payment methods such as Interac are available.
  • Digital wallets such as ApplePay are accepted as a payment method for customers.
  • Your business can start receiving online payments almost immediately after your application has been approved.
  • Customers stay on one site to complete the checkout process.
  • Customers can receive discounts and coupons.

PayPal Standard

  • The only additional fees charged are transaction fees.
  • Simple user interface.
  • Supported by WooCommerce and WordPress scripts by default.
  • No monthly fees are incurred.
  • No start-up fees are required.
  • No termination fees.

PayPal Pro

  • Rates are negotiable with your account representative after reaching a certain volume of sales.
  • Payments are accepted with your phone, fax, and mail.
  • Customized checkout form.

Bambora

  • Predictable model for you to manage costs.
  • Every transaction has a flat fee rate
  • No cancellation fees.
  • No hidden fees.

Moneris

  • Suitable for e-commerce businesses with large processing volumes.
  • Has competitive rates.
  • 24/7 customer support.

How much will each payment solution cost?

Stripe

Stripe’s PAY AS YOU GO plan will cost you a flare rate of 2.9% with an added $0,3 for each transaction that takes place domestically. For international payments, it will cost an extra 0.6% for each transaction. A 2% conversion rate could also be added. Your rates can decrease to 2.2% once you earn a minimum of $100 000 per month. Chargebacks can cost up to $15. This will depend on who the winner of the dispute is.

PayPal Standard/PayPal Pro

PayPal Standard has a flat-rate transaction fee of 2.9% + $0.3 for domestic payments. US payments will cost you 3.7% + $0.3 for each transaction. Payments not in Canada or the US can expect a fee of 3.9% + a fixed fee that will vary per country.

PayPal Pro transactions will cost you 2.9% + $0.3 for each sale. There is also a monthly charge of $35. Automation of subscriptions will cost you a further $10 per month. Rates for the US and international payments are the same as PayPal Standard rates. Refund fees will cost you $3.

Bambora

Bambora’s Blended pricing will cost a fixed 2.8% + $0.3 per transaction. A monthly fee of $25 is charged. The setup fee will cost you $49. The chargeback fee is $20.

Moneris

Moneris has a monthly fee of $39.95 and will charge you $150 for a one-time setup. Transaction fees vary per payment method but are between 1.6% and 2.0% + $0.5. The virtual terminal will cost you an extra $10. The chargeback fee is $25.

What are the application requirements?

Stripe allows you to start selling immediately. There is no verification or approval needed.

Meanwhile, PayPal requires you to enroll to use their services on your website. You can add the PayPal payment code as a button on your website.

Bambora requires you to contact one of their sales representatives, and then you have to wait to get approved by them. Approval does not come easy as Bambora could, for whatever reason, choose not to support your business.

Finally, the best way to get into Moneris is to contact their sales department and ask for a quote. You will then have to wait for the approval and only begin selling once your setup has been finalized.

Need help choosing the right payment solution for your requirements? For a free assessment, call us at +1 (416) 628-5522, or email us at [email protected].

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