Online payment processors are the biggest financial solutions of the 21st century. From B2B transactions to personal payments and POS gateways, there are options that suit every need. In a stabilizing economy like that of Canada, payment providers have become relevant on a new scale. So depending on your needs, you’d have to make a choice of payment processor at every turn. 

Over this piece, we’ll convey a better understanding of the payment systems in Canada, cover the best options and how to go about making your choice. Read on. 

Understand Payment Processing in Canada 

Fundamentally, payment processing in Canada features a couple of players. These include banks, credit and debit card networks, e-wallets and others. This is where online payment processors become invaluable. They harness these payment resources into a single gateway to enable businesses and individual consumers to handle transactions across various methods. 

Of the dozens of payment processors in circulation in the country, choosing one for you or your business may turn out more confusing than it appears. As such, let’s highlight some unavoidable standards you’d have to look out for when exploring payment gateways

What you need to consider

Ron Morrow, Executive Director, Bank of Canada – “Today marks a big step toward giving Canadians added confidence in the safety and security of retail payment service providers.”

Below are some of the most necessary factors to never lose sight of when choosing a payment processor in Canada:

• Fees and pricing structure: Cost is always an important factor. Whether you are out to solve personal payments or merchant services, explore payment gateways with competitive rates. These include monthly charges, transaction fees, chargeback or any hidden fees.

• Supported payment methods: Especially if you are running a business, you should be on the lookout for processors that support diverse payment channels. Check if it supports credit and debit cards, e-wallets, e-transfer, etc.

• Compatibility and integration: Go out of your way to verify that your chosen processor integrates with your business platform. It could be your point of sale system, your website, your e-commerce platform, your website and all.

• Processing speed and reliability: Payment speed is crucial for merchant and point-of-sale services, as customers aren’t known to have a lot of patience. Check how quickly funds are settled, and consider delays or restrictions. 

We’ve intentionally left out some standards to consider such as safety, customer support and reputation. That is because these are unspoken standards and any online payment processor isn’t worth the name if these aren’t in place. 

Fun fact: Leading payment providers, such as Square, PayPal, and Stripe, maintain near 100% uptime, ensuring transactions are almost never disrupted.

Types of payment processing solutions

Businesses, in principle, can choose different processing solutions depending on their business parameters. Prominent among these are proprietary payment processors and merchant account providers. 

Payment processors

A typical payment processor functions as an intermediary between customers, businesses and banks to foster transactions. They settle payments by handling encryption of data, authentication and authorization of payments. Prime examples are third-party processors like Stripe, PayPal and InstaDebit. These allow businesses to receive payments without using a separate merchant account. 

In illustration, a processor like InstaDebit is predominantly used in online casinos to make deposits and withdrawals. In this process, InstaDebit acts as an intermediary between the user’s bank account and the casino. The entire process is pretty smooth and easy. It is no surprise that online casinos with InstaDebit payments are amongst the top in Canada. 

Merchant account providers

Instead of typical processors, some businesses deploy special bank accounts to hold money from customer payments before conveying them to a business account. These bank accounts are hosted on merchant account providers.

5 best payment processors in Canada

PayPal Canada 

Reid Hoffman, American Entrepreneur – “PayPal was disruptive, it was democratizing, and it had universal appeal. It gave power to millions and millions of individuals and reduced monopolist control from nations, banks, and other huge corporations.”

After becoming independent in 2015, PayPal has grown to facilitate payment in over 200 countries around the globe. For Canadians, it offers a good range of payment methods by supporting bank transfers, card payments and other digital wallets. PayPal is great for e-commerce, freelancers and businesses with PayPal checkout, PayPal business and PayPal credit services all in play.

Moneris: Canada’s largest payment processor

Initially founded as a joint venture between the RBC and the Bank of Montreal, Moneris is a comprehensive business payment solution. The processor provides reliable POS systems, e-commerce solutions and card payment processing services for all sizes of businesses. It is because of its prominence amongst retailers, restaurants and e-commerce platforms that earn it the acclaim as Canada’s largest payment processor.

Chase Merchant Services: scalable solutions

Being a division of JP Morgan Chase, Chase merchant services is leading in scalable payment solutions for businesses in Canada. Just like Moneris, Chase offers top e-commerce solutions, POS systems and card payment services. Essentially, the provider is great for growing enterprises and high-volume merchants who need data payments. 

Nuvei: innovative Fintech solutions

Founded in Montreal in 2003, Nuvei serves businesses globally with its future-proof technology and broad compatibility. It supports renowned payment methods like digital wallet, credit and debit cards, real-time payouts and even crypto transactions. For businesses looking to explore alternative and unconventional payment technology, Nuvei is an ideal option.

Square Canada: simple and reliable

After expanding into Canada in 2012, Square rapidly became a top business payment solution that caters to online payments, invoicing contactless payments. It supports popular mobile payment processors like Apple Pay, Google Pay, etc and is famed to be all-round affordable. The provider’s mobile-friendly platform is bliss for freelancers, mobile vendors as well as small businesses. Simply one of the best payment gateway integrations.

Fun Fact: Square rebranded as Block, Inc., reflecting its expansion into crypto (via Cash App & Bitcoin) and other financial services.