The credit and debit card industry in Canada has its own set of payment processing rules and regulations since 2010. If your business is based out of Canada, or even sells to Canadian customers, then you need to take heed. This applies if
- Your business is based in Canada
- You have a US-based business with an outlet in Canada
- You are a US-based business with customers in Canada
High risk credit card processing Canada style means you need a special high risk merchant account. Here we explain why that is so, and how to go about getting one.
Can I use my existing merchant account to sell to Canadians?
Every merchant account is issued with a set of terms and conditions. For the majority of low risk businesses, that caters to the normal day to day business needs you described when you applied for the account.
Card processing companies tailor their rates to meet each business on a case by case basis. Your local Main St. Bank may not accept any business that they deem to be high risk.
Is Canada a good export market to consider?
Many US online merchants have successfully expanded into the Canadian market from their existing premises. Canadians buy a great deal of goods online for three primary reasons
- Products that are not available locally in Canada
- Cheaper prices – especially for electronic goods
- Natural affinity with US sellers because of shared language (mainly) and proximity
Canada has different laws and regulations. For example, cannabis is legal for medicinal and recreational use in all states. This presents a very attractive opportunity for businesses in that industry.
Thinking of exporting to Canada? Here are some guidelines for US business owners
This is not meant to be a complete list. It’s intended to give you a flavor of things to be considered. These are the major factors to successfully selling to the Canadian market.
- You will need a high risk credit card processing Canada merchant account. See below for how to get this.
- A clear returns policy is vital. If customers need to send goods back to a merchant using international mail or courier services, be very clear about
* What may and may not be returned
* Any time limits for requesting returns
* The steps involved
* Who pays the costs
- You may need an export license or permit for certain classes of products or services. Check out the export control laws and regulations.
- Learn about international mail and courier charges.
- Canadians are power users of mobile devices, so ensure your website is fast and mobile friendly.
- Make customers aware that goods crossing the border may be liable for additional customs duty fees, which must be paid by the buyer. Delays in customs are usual.
What is a high risk credit card processing Canada merchant account?
A high risk merchant account is simply a bank account with card processing capability set up specifically for your business. That means that the payment processing service understands your industry and any special challenges it faces, such as international sales.
Typically a Canadian customer makes a purchase using a debit or credit card. Card payment processing takes place through a payment gateway with the funds paid into your merchant account.
Why chargebacks are a risk to your Canada merchant account
High risk credit card processing Canada is designed to endure greater tolerances for unforseen potential issues than a regular low risk merchant account. That may include higher risks of chargebacks, tighter regulation of your industry, or simply engaging in international sales.
Those are the most common scenarios for acquiring banks to rank an industry in the High Risk category. Let’s take a brief look at each of these risk areas:
Chargebacks – A customer may decide to raise a dispute or chargeback directly with the customer’s own card issuer instead of resolving the matter with the merchant. The card issuing bank then makes a refund to the customer. They pass the cost to the payment processor that handled the transaction. It’s eventually debited to the merchant’s account among with fees and penalties. Chargebacks cost every party money. Too many and your merchant account may be closed. It’s a good reason for choosing a high risk merchant account because that permits a higher ratio of chargebacks.
Regulation – Industries that are tightly regulated present a higher risk of breaking the law, no matter how unintended. That could invite litigation against all parties involved in a transaction.
International sales – Cross-border sales involve added complexity. Factors include different currencies, customs and slower delivery times, and different consumer laws. That means a greater chance of things going wrong meaning unhappy customers.
How to get a high risk credit card processing Canada merchant account
Call the experts. We are SecureGlobalPay – specialists in sourcing high risk merchant accounts for a whole range of industries.
Over the years, we have built relationships with banks and card payment processing companies across the globe. That includes the US, Canada, Europe & Asia. We know which merchant account providers have tailored their service to suit the challenges of your particular business.
It means we can quickly select the perfect merchant account to handle your Canadian business card payment processing requirements.
Take the first step today
It all starts with contacting us and providing some details about your business. We then swing into action to identify the best merchant account service provider for your Canada business.
Click here to make an application. Typically we will get back to you within 3 to 5 days with a status update – sometimes it’s much quicker than that.
Call us on 1-800-419-1772 or 1-805-855-0214 from Canada if you prefer to speak with one of our payment experts. Our friendly team is very happy to answer all your questions and explain how the process works.