10 Questions to ask to find the best Payment Processor for your Online Business in Canada
Finding the best payment processor for your online business in Canada can be an overwhelming and confusing process, even for the most experienced seller.
Today, I want to dive into important questions you NEED to ask before choosing a payment processor. It’s so important to get clear on exactly what you need in your online business, how you can simplify and streamline the accounting side of it all, and save on processing fees in Canada.
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So, BEFORE you click “Sign up” with a payment processor, make sure you can answer these 10 questions!
10 Questions to ask to find the best Payment Processor for
your Online Business in Canada
What are the costs of using the Payment Processor?
Probably the #1 question I get asked about Payment Processors in Canada, and with good reason: fees can stack up quickly, especially when it comes to international transactions and online products. Make sure you are super clear on what the transaction fees are BEFORE signing up, like:
-What is the transaction fee?
Is it based on monthly volume? Standard fee per transaction?
-Do fees vary by customer card type?
-Is there a monthly fee or minimum transaction required?
-Are there volume discounts? (or variable rates on higher purchase prices?)
Does the Payment Processor sync with my Online Selling platform?
How you sell your products in your business is a key decision maker when it comes to selecting an online Payment Processor. Some integrate directly with your Sales System (like Shopify, WooCommerce, Etsy) while others require some coding or external app support. If you’re selling online across multiple platforms, you may want ONE payment processor to capture all your sales. It’s a good idea to check out current available integrations in your selling platform before signing up for a payment processor in Canada.
Does the Payment Processor sync with my accounting software?
I’m all about that automation life! Many payment processors offer direct integration with popular accounting software (like QuickBooks, my #1 choice for online entrepreneurs) which can save you precious time when it comes to your bookkeeping & taxes.
What are the current processing times in Canada for this Payment Processor?
Basically, you want to feel confident knowing exactly when those sales land in your bank account. Also clarify if it’s an automatic deposit to your bank or you have to transfer/request funds from the payment processor. And, because you’re doing business in Canada, you’ll need to confirm that the payment processor doesn’t require additional time for deposit or currency conversions (a common security issue when using international tools to collect payment)
Does the payment processor support multi-currency for your online business?
If you are selling globally, you’ll need to decide what currency/currencies you want to operate in. International accounting can get a bit complex for businesses in Canada (especially when it comes to Sales Taxes), so a few of my clients offer both Canadian pricing for national purchases and USD for global. Whatever you decide for your business, you’ll want to confirm what currencies your payment processor can provide.
Does the payment processor track sales taxes?
Speaking of taxes, you’ll want to look at what sales tax tracking (and reporting!) capabilities exist within your payment processor. For example, can it calculate multiple sales tax rates based on region? Add your tax ID to all digital receipts? Who is responsible for collecting & remitting taxes outside your home country? These are vital questions to ask to make sure you’re setup to charge sales taxes CORRECTLY to avoid big fines & penalties. (Questions on Sales Taxes in Canada? The waitlist for “Sales Tax Bootcamp” is now open- click HERE for more info)
Where is the payment processor based?
When you sign an agreement with a payment processor, you are usually subject to the laws of where that business operates from. Every country has different rules regarding things like merchant protection, privacy policies, dispute actions so it’s worthwhile to make note of this before you sign an agreement.
What is the cancellation policy?
Many payment processors operate on a per-transaction basis, but others may require a contract or notice to cancel services. You don’t want to get stuck paying for a monthly service you don’t want/need to use, so make sure you feel confident that you can easily cancel a service if it’s not the best fit for your business.
How do they handle your data?
I know, I know: does anyone ACTUALLY read the privacy policies they sign? But when it comes to making money online- you’ll want to. Not only do you need to consider how your personal & banking data is handled, but also that of your customers buying from you. With breaches happening frequently in online platforms, you’ll want to feel confident that A: your data is protected, but also B: WHO is responsible in the event of a data leak.
What options are available for support?
If things go wrong (or you need general help), how quickly can you get assistance? Do they have online chat support? Discussion board? Email? Phone contact? We often don’t factor this in when making our decision, but believe me- when you suddenly can’t access your account or withdraw your money, it becomes REALLY important.
Summary
It can be overwhelming trying to select the best payment processor tool for your online business, and there are additional considerations if you sell online in Canada. Make sure to get REALLY clear on the available features, pricing, and contract commitments before you sign up with a payment processor. Use the checklist above to help you find the best tool for YOU and your online business in Canada.
Up Next: Best Payment Processor for Digital Products
If you’d like to dive deeper into the finance side of your e-commerce business, the waitlist for “Finance Tools for Online Sellers” is now open. 100% Free & designed for Canadian sellers in mind. Access the free training HERE.
