Why Canadian Consumers Still Choose Cash For Making Purchases

Jan 31, 2017

Most people in Canada still use cash for making purchases. Payments Canada’s recent report says the popularity of cash has dropped than other payment methods, including electronic, online and cards. The report was written analyzing 20.9 billion transactions that counted for over $8.9 trillion.

Payments Canada’s Report

According to authors Michael Tompkins and Viktoria Galociova, members of Payments Canada’s research unit, with payment methods and channels evolving in the point-of-sale and remote environments, users prefer faster and more convenient transactions.

The report says cash counted for 32.4% of all payments processed in 2015. The mentioned payments made up only 1.3% of the total amount of money exchanged. Moreover, cash has become less popular by almost a third since 2008.

As for checks and paper, they counted for 44.7% of the total amount of money exchanged and made up only 4.2% of payments. The things is that though fewer checks are being written, they represent larger amounts. The value of the average check increased by 10% between 2014 and 2015, accounting for over $46.000.

The Popularity of Online and Electronic Payments Is Growing

Merchants interested in secure and low-cost payment processing should consider turning to emerchantbroker.com. With EMB, you can open a reliable Canadian merchant account for your online business. EMB is the top high risk processor in the US and boasts an A+ rating with the Better Business Bureau (BBB). EMB is rated A by Card Payment Options and is one of Inc. 500’s Fastest Growing Companies of 2016.

The amount of online transfers increased by 47% between 2014 and 2015. Even though they counted for 0.6 percent of all transactions and 0.5% of their total amount, this was the highest growth rate with regard to payment methods analyzed.

Tompkins and Galociova noted that the amount of debit payments were increasing by 5.5% and the amount of credit card payments were growing by 5.3%. According to the researches, the reason had to do with convenience and rewards programs.

Canadians are using credit cards more frequently (21% growth) and have lowered their average balance by 21%. EFT of electronic funds transfer payments turned out to be the 2nd most favored payment method and one of the fastest growing methods by volume.


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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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