SitePoint Sponsor

User Tag List

Results 1 to 11 of 11
  1. #1
    SitePoint Addict sstaubin01's Avatar
    Join Date
    Nov 2000
    Location
    Ont, Canada
    Posts
    234
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Internet Merchant Account Costs in Canada?

    Can any one give me an overview of the costs involved in setting up an internet merchant account in Canada. I've read that it is a better solution to incorporate in the US and set up a US Merchant Account. Please give me your thoughts, experiences, opinions. Thanks.

  2. #2
    Payment Acceptance Expert jconley2's Avatar
    Join Date
    Aug 2000
    Location
    Charleston, SC
    Posts
    321
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Same rates/fees for Canadian merchants as with US merchants...

    Todd Sumrall with Electronic Processing has a special site setup for Canadian merchants. It can be found at http://www.canada-merchant-accounts.com/ Todd specializes in Canadian merchants and as you will see on the site the rates are about the same as for US merchants (monthly gateway fee is a little higher than for US merchants, but other rates fall in place with US merchant accounts) and no US incorporation is needed. A US checking account is required (which they can help you get, costs $100 to open which isn't a fee but rather goes directly into the checking account - maintenance fee for the checking account ranges $5 to $15 a month). Otherwise, I believe that's it.

    I know Todd well and have talked with him months back about his program he has setup for Canadian merchants. From what I hear they have a really good service and I would certainly get up with Todd and see what he can offer you. Real nice guy, by the way, and knows the industry well.

    To your success,

    Jim Conley II
    CEO/Founder - MerchantSeek
    Search FREE for a Merchant Account Provider based on your business needs and budget. We're your one stop information source on payment acceptance.
    Visit us at http://www.merchantseek.com
    Last edited by jconley2; Aug 21, 2001 at 07:24.

  3. #3
    SitePoint Addict sstaubin01's Avatar
    Join Date
    Nov 2000
    Location
    Ont, Canada
    Posts
    234
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Thanks Jim. I've found your site very informatitive from a US perspective.

    Here's a basic question for you. Why do I need a US Merchant Account? I have incoroprated in Canada and was intending on setting up a merchant account through a Canadian Bank. Sounds like I'm on the wrong path. Can you give me some background knowledge. Thanks.

  4. #4
    Payment Acceptance Expert jconley2's Avatar
    Join Date
    Aug 2000
    Location
    Charleston, SC
    Posts
    321
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Thanks for your compliments!

    You don't necessarily need a US merchant account. You may very well get better rates from a Canadian bank. Honestly, I really don't know. Rates and merchant account setup is different for every country. Some countries make it tough for some businesses to accept credit cards so incorporating in the US and getting a merchant account from here is sometimes a good choice for them. Or perhaps use a 3rd party processor. Usually I recommend non-US merchants to go with a 3rd party processor because it's just cheaper for them (at least for now) and less of a hassle to get setup (usually). Till you incorporate in the US, have mail forwarding, phone forwarding, etc. the costs can really add up. That's why I just suggest they use a 3rd party processor, at least until merchant accounts become more affordable for non-US merchants. Otherwise you can run into the hassles of having incorporating here and all that before getting the merchant account. Not always the case though (like http://www.planetpayment - they don't require US incorporation, but their rates can be high depending on the country the business is located in).

    Right now there is no AVS (Address Verification) or the like in place for non-US merchants, this can cause for more instances of fraud and chargebacks. Plus because there's no AVS support, Visa and MasterCard charge higher discount rates and sometimes even per transaction charges. Somewhere between .17% and 1.25% additional to what the discount rate already is.

    My suggestion would be to check with a local bank and see what the charges would be and compare them to what canada-merchant-accounts.com charges. See which is better and then go from there.

    I'd be interested in seeing what your local bank can come up with, it may very well be the best option for you. Please do let me know.

    To your success,

    Jim Conley II
    CEO/Founder - MerchantSeek
    Search FREE for a Merchant Account Provider based on your business needs and budget. We're your one stop information source on payment acceptance.
    Visit us at http://www.merchantseek.com

  5. #5
    SitePoint Addict sstaubin01's Avatar
    Join Date
    Nov 2000
    Location
    Ont, Canada
    Posts
    234
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Jim: Check out http://www.beanstream.com for Merchant Processing from a Canadian prospective. Tell me what you think.

  6. #6
    Payment Acceptance Expert jconley2's Avatar
    Join Date
    Aug 2000
    Location
    Charleston, SC
    Posts
    321
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Brian,

    I checked out the site in detail. Never heard of BeanStream before today. From what I seen I think they are certainly worth persuing. I looked over their FAQ rather well. I didn't get any "red flags", so that's good. At first I thought they only allowed for the final ordering process to be on their servers, after closer research you can have everything on your site and just send the transaction information to their servers. They support the use of a real merchant account (which they can help you get) or you can get on your own. Only part I didn't like was the fact you had to fill out a questionaire to get their rates and fees information. So you'll have to tell me what their prices are like.

    I look forward to hearing back from you. Again, from what I can see they look like a good company, I'd give them an e-mail inquiry to see how quick they are at responding to e-mails. Again, post their rates and fees so I can see what they are like.

    For that e-mail inquiry to them (which I highly suggest you do) here's some general questions you should ask:

    1. Can you provide me with the email addresses/URLs of at least 5 customers I can contact as references?

    2. Are you willing to put everything in writing, including all fees?

    3. What is the name and location of the processing bank?

    4. Are you registered with Visa/MasterCard?

    5. Do you provide 24/7 support over the phone? (If so, and they should, test it out.)

    6. Is a reserve account required? (If the answer is yes, look elsewhere unless you're business is located out of the US in which case a reserve account may be required.)

    7. When will funds be available? (Look for 3 days or less)

    8. Are you a member of your local Chamber of Commerce and/or the Better Business Bureau (BBB)? (If they are, check to see if there are any previous complaints or disputes on their record.)

    9. Are the banks you are partnered with to issue merchant accounts FDIC-Insured?

    10. Ask if they are a member of the Electronic Transactions Association (ETA). ETA is a trade organization that supports fair and ethical business practices for Independent Service Organizations (ISO) - another name for Merchant Account Providers.

    I've bookmarked them for possible recommending in the future.

    To your success,

    Jim Conley II
    CEO/Founder - MerchantSeek
    Search FREE for a Merchant Account Provider based on your business needs and budget. We're your one stop information source on payment acceptance.
    Visit us at http://www.merchantseek.com
    Last edited by jconley2; Aug 22, 2001 at 22:52.

  7. #7
    SitePoint Addict sstaubin01's Avatar
    Join Date
    Nov 2000
    Location
    Ont, Canada
    Posts
    234
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Jim: I thought you would be interested in doing a detailed analysis. Thanks for your thoughts. Where have I see that list of general questions before? Have you been writting feature articles with Matt for Site Point? I just noticed Part 4 is now available. I have a new ToDo item.

    I did fill out the questioner and got access to .pdf documents detailing interesting information. I will E-mail them to you. I don't know if we can post them in the fourm.

  8. #8
    Payment Acceptance Expert jconley2's Avatar
    Join Date
    Aug 2000
    Location
    Charleston, SC
    Posts
    321
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Brian,

    Yeah, Matt and I worked on the 4 part guide.

    Just got the PDF documents, I'm looking over them now and will get back with you shortly.

    If you come across any other sites that you want me to check up on let me know. Though it looks like you may have very well landed on one worth your while, we shall see.

    I wouldn't mind seeing the reply they give you if you do send that list of questions (and any of your own).

    To your success,

    Jim Conley II
    CEO/Founder - MerchantSeek
    Search FREE for a Merchant Account Provider based on your business needs and budget. We're your one stop information source on payment acceptance.
    Visit us at http://www.merchantseek.com
    Last edited by jconley2; Aug 23, 2001 at 06:51.

  9. #9
    Payment Acceptance Expert jconley2's Avatar
    Join Date
    Aug 2000
    Location
    Charleston, SC
    Posts
    321
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Brian,

    After looking over their rates and fees I would say they are bit on the high side (to me at least). Especially in the area of the per transaction fee and discount rates for Visa/MasterCard.

    If you were to go with them I'd go their Package 2 offering. Package 1 are costs that will be additional to what you already would be paying for a monthly fee and per transaction fee from your current merchant account provider. You don't want this.

    The Package 2A option with no setup fee or monthly fee looks ok, but then they nail you with a $1.00 CAD ($0.65 USD) per transaction fee and a discount rate of a whopping 5%. Plus a monthly minimum of $39 USD. Even if your willing to pay a setup fee the discount rates are still on the high side, even though they are lower along with the per transaction fee, the higher you pay for the setup fee. But where they get you is the higher you pay of a setup fee, the higher you'll pay for a monthly fee also which makes up for the deductions they are giving you on the per transaction and discount rates.

    Also, any customers outside Canada, USA and Western Europe who order from you will cost you an additional 1.50% discount rate in addition to what you already would be paying for customers living in the areas I mentioned above.

    There's also a reserve fund (which I dislike) that takes 8% of your credit card sales for 6 months.

    Honestly, I believe they are a bit pricey. I would still contact the folks at canada-merchant-accounts.com and see what offer they can give you. Again, they have some very happy Canadian clients and their rates/fees sure do look at a lot better (at least according to their site).

    Let me know what you decide to do and of course if you have anymore questions let me know. Keep me up-to-date on things! I look forward to hearing from you.

    To your success,

    Jim Conley II
    CEO/Founder - MerchantSeek
    Search FREE for a Merchant Account Provider based on your business needs and budget. We're your one stop information source on payment acceptance.
    Visit us at http://www.merchantseek.com

  10. #10
    SitePoint Member
    Join Date
    Oct 2001
    Posts
    1
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Hi Jim,

    How are you. Was looking at the server logs and seen a click from here and that is how I stumbled on this. Thanks for the kind words about http://canada-merchant-accounts.com

    Couple things I would like to point out. Canadian banks are very conservative and therefore it is often difficult for a Canadian wanting an Internet merchant account to get one. Canadian banks also operate on the dual system. That is, one bank can handle the MasterCard processing and another the Visa processing and thus requires a Canadian merchant to have two merchant accounts to accept both cards. Here in the US, merchant banks handle processing for both cards and getting an Internet merchant account is fairly easy for US merchants.

    Prior to our setup, Canadians would need to incorporate in the US and have a US agent and the mail forwarding etc as you mentioned so it was cost prohibitive for a Canadian merchant to obtain a US merchant account. This is no longer the case. We do not require incorporation and our pricing is exactly the same for both US and Canadians. There is no markup because a person lives in Canada.

    I will say the bank we have to use for Canadian merchants is pickey when it comes to personal credit history and credit problems can result in reserves whereas because we can use several banks for US merchants we are often able to get arouund this if a US merchant has credit problems. Unfortunately we have only one bank to send Canadians to, but they are a good bank and very fair with their underwriting guidelines. To date, never had a Canadian merchant declined and very few have had to go the reserve route.

    Sincerely,
    Todd Sumrall
    http://Merchant-Solution.com
    http://Canada-Merchant-Accounts.com
    Merchant Accounts, Web Hosting, For both Americans and Canadians

  11. #11
    Payment Acceptance Expert jconley2's Avatar
    Join Date
    Aug 2000
    Location
    Charleston, SC
    Posts
    321
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Hi Todd,

    Thanks for the overview, I'll be looking forward to sending more Canadian merchants your way.

    To your success,

    Jim Conley II
    Your Payment Acceptance Expert
    Get FREE copy of "Top 3 Merchant Account Pitfalls REVEALED" -
    http://www.discount-merchant-account.com
    Touch-Tone Credit Card Processing - $39 setup & $5/month


Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •