Canada Lacks E-Commerce Skills Compared to the USA

Nov 18, 2015

Most developed countries take advantage of the internet via its commerce uses. From dating websites to bill paying to shopping, internet payment technology is soaring in many countries. However, as trendy and young as Canada may seem to be, their e-business skills lack compared to the USA, the UK, and Europe. They reason for this is odd, because Canadians are more internet-active than others in the world are.

Canadians have more access to the internet than citizens of other developed countries do. Canadians are also more social media savvy. This should translate into shopping, bill paying, and other web-based money spending habits, but it does not. It has been surveyed that 93% of people research their future purchases online, so why not buy online? Well, for many reasons. The majority of Canadians who do purchase online do so from retailer that are based outside of Canada. This can lead to time waits and higher postage rates, as compared to the instant gratification of buying a product in-store.

Another issue comes with a shortage of online merchants that are located in Canada. Less than 50% of Canadian businesses have websites, which is something that can hinder a business’s ability to attract customers. Creating a website – or even a social media page for a business – can easily be done by any merchant. In addition to selling via a website, many are selling via social media. This can help build a business, and the sharing abilities of social media markets allows for easy marketing.

A much bigger issue comes with the lack of good Canadian merchant account providers. A big issue with merchant accounts is the percentage of chargebacks that a company can acquire. A chargeback can not only cost a company funds, but also cost them their merchant account if they end up with too many chargebacks. Companies that sell outside of their country – as many Canadian merchants wish – can lead to a higher chargeback rate. You need to make sure that your Canadian merchant account is housed by a company that is experienced dealing with chargebacks, like EMB.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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