Merchant payment processors charge payment processing fees to business owners for their services. The size of the fee depends on various factors including a transaction’s risk level and the type of card being used.
When you are selecting a merchant payment processor in Canada, you need to consider many factors. One of the most important, besides security, is their processing rate.
So, how much do the top payment processors charge?
Top Payment Processors in Canada and Their Rates
1. Elavon: Elavon is one of the largest merchant payment processors. It is best suited to medium-sized and large businesses. Verifone and Ingenico are Elavon’s most commonly-used terminals. Apart from that, they also provide web terminals, e-commerce gateways, tablet POS, and mobile processing.
They offer a wide range of pricing, but their most common pricing is their Costco offer. Here, their merchant payment processing rates are 1.56% for swiped transactions that qualify and 2.07% for those that do not. They charge a monthly fee of $10 and a PCI fee of $175.
2. First Data: First Data (now Fiserv) is known for helping in the creation of Google Wallet which is now used globally. It is best suited to larger businesses processing around $100k or more. They also offer several terminals, tablet POS, e-commerce gateways, and web terminals. Their products are usually advanced and innovative.
They charge approximately 2.69% for $50,000/month or less in swiped payments, and 2.29% for $50,000 — $200,000/month. Their merchant payment processing rate for keyed payments is 3.69% for payments ≤ $50,000/month and 3.29% for payments $50,000-$200,000/month.
3. Global Payments: This well-known name in the field of merchant payment processors is best suited to businesses processing $100 million or more. They offer a wide range of products and services like payment machines, tablet POS, and e-commerce gateways.
Their swipe rate, keyed-in range, and virtual terminal rate ranges between 1.00% to 4.99% while they charge a $10 monthly fee. They also charge an annual maintenance fee of $299 and have a locked lease term for equipment for 48 months.
4. PayPal : PayPal is an extremely popular payment processing service, especially for online business owners. It is the best option for smaller businesses. PayPal offers e-commerce gateways, web terminals, and mobile processing.
The merchant payment processing rates of PayPal are very transparent. They don’t have early termination fees, unlike many payment providers but do have a chargeback fee. (A chargeback fee occurs when a customer disputes a credit card payment and wants to nullify it.)
You will have to pay $0.30 per transaction for processing of $0-$3,000/month along with 2.9%, 2.5% for $3,000-$10,000/month, and 2.2% for more than $10,000/month. For transactions of more than $100,000, they have special pricing.
5. Square: This payment processor is known for facilitating a simple solution for small businesses and is recommended for small or seasonal businesses that process low volumes or infrequently. They offer mobile processing, tablet POS, and e-commerce gateways.
They charge a flat rate of $0.15 per transaction, or 3.4% for keyed-in transactions and 2.65% for swiped transactions. They don’t have a monthly fee or contract.
There are many more merchant account providers who offer a wide range of services. Pick someone who can keep up with your expansions and fulfill your payment needs at reasonable, upfront rates.