Tips for Getting a Canadian Business Merchant Account

Feb 21, 2018

Businesses no matter where they are located can’t get by without accepting and safely processing credit card payments. Whether you are an online business that relies heavily on credit card transactions or a retail business that doesn’t want to get lost in the world of cashless consumers, you will need a merchant account to process payments. When your business is based in Canada, you should be prepared to run into some challenges along the way.

When you want to obtain a Canadian merchant account, there are several factors to consider, including which geographic market your business plans to pursue. Knowing what to look out for will help make obtaining a merchant account that much simpler.

Know Your Primary Geographic Market

Taking advantage of the U.S. or international markets are great ways to boost income potential and expand customer base. When you go for a merchant account, you will need to be able to explain to the provider which customers you plan to reach so it can determine which currency you want to process transactions.

If you are a bricks-and-mortar business in Canada or an online business that mostly works with Canadian consumers, it is best to work with a provider and processor that handles transactions in CAD currency. By using a local processor, you are set your business up for the lowest fees, the quickest funding, and the best possible support.

On the other hand, if you are a Canadian merchant that plans to focus on the U.S. market, then it is best to set your sights on a local-based processor that supports transactions in U.S. dollars.

Finally, if your Canadian business wants to reach a global market, a provider should place you with a European Union-based bank that can support multiple types of currency.

Why Geography Matters

Using a processor from the country where you are pursuing the most business is important because it protects your customers from high surcharges and helps you inflate your revenues.

For example, if you have a Canadian merchant account and processor but selling products or services mostly to American consumers, you will pay higher fees and surcharges for credit card transactions because you are crossing borders. Therefore, in this situation, it would make the most sense to go with an account that works with a U.S.-based processor.

Locate a Canadian Merchant Account Provider

When looking for the best Canadian merchant accounts, it pays to work with an expert who knows the payments industry inside and outside. Merchant account providers with experience will have great relationships with Canadian banks and those around the world and will know how to find a solution that meets all of your needs. It is important to note that it is not rare for a business to have several merchant accounts to be able to support many types of currency.

Also, a provider should be aware of the Code of Conduct for the Credit and Debit Card Industry in Canada. This code, which is unique to Canadian merchant accounts, was passed down from the Financial Consumer Agency of Canada. The code applies to all payment card networks and their participants, which aims to ensure merchants and consumers clearly understand both the costs and benefits of credit and debit cards. The provider you should work with should not only be aware of the pros of the code but what it’s missing. For instance, the codes has no standards in terms of equipment leasing or advertising.

Most importantly, make sure the provider you work with has your best interests in mind. A quality provider gains this insight by assessing the specifics of your business before suggesting the type of merchant account or payment solution that will support your needs.

Also, you should look for merchant account providers that offer fraud protection and chargeback mitigation programs. These are beneficial when dealing with any ecommerce businesses.

Our Final Thoughts

Navigating your way to a Canadian merchant account isn’t simple, but not impossible if you know what to expect. When you are ready to apply for a Canadian merchant account, turn to a merchant account service provider, like (EMB), that has experience and the knowledge to guide you through the application process.

Apply today using EMB’s simple and fast online application. We are a trusted, reliable payment solutions provider that specializes in offering payment solutions to all type of merchants, including high-risk businesses.

Let us help you get a high risk merchant account today!

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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.