Canadian Merchant Accounts

Nathan Beck
March 2, 2024
11:35 am

Canadian Credit Card Processing and Payment Processing

At Durango, we often get the question from potential Canadian clients, “how do I get a merchant account?” To start, we have several different types of merchant accounts catered to Canadian merchants, including the merchant account for Canadian businesses. However, there are some key variables that need to be taken into account before we can determine the ideal solution for your business. For example, we need to know what market you will be primarily pursuing: the U.S. market, the Canadian market or the international market. The reason for this is because we need to determine which currency you are looking to process in, either USD, CAD, or another currency.

Another factor that we will need to determine is whether you have a U.S. dollar or Canadian dollar checking account, or both. And is this bank account with a U.S. bank or a Canadian bank? We’ll cover each of these matters in more depth below so that Canadian merchants can obtain the appropriate processing solution for their business.

But first, let us introduce ourselves and provide more general context for the Canadian payment processing market.

Who is Durango Merchant Services?

Durango Merchant Services is a specialized payment processing company with a focus on supporting businesses classified as high-risk, a segment often overlooked by conventional banks and payment processors. Catering to a broad spectrum of industries within Canada and beyond, our services extend to ecommerce entities, herbal supplement vendors, travel agencies, auto supply stores, subscription services, and various e-commerce platforms, among others. We also service low-risk clients looking for great rates and fast approvals.

Since our inception in 1997, our mission has been to offer reliable payment solutions to businesses facing challenges in securing such services. With over 25 years of experience in the industry, Durango Merchant Services is equipped to provide a comprehensive range of services tailored to the unique needs of high-risk businesses. In Canada, we understand the specific regulatory and market dynamics, enabling us to offer customized payment processing solutions that align with Canadian business practices and consumer expectations. Whether you’re looking to navigate the complexities of Canadian payment regulations or seeking to expand your high-risk business across the country, our team is dedicated to ensuring your payment processing needs are met with expertise and precision.

What Sets Durango Merchant Services Apart from the Rest?

No-cost application
25 years of assistance for high-risk industries
Global banking connections network
Durango Gateway for Payments
Personalized guidance to enhance approval prospects
Support for payments across multiple channels
Subscription management with recurring payment features for supplements
Gateway that supports transactions in multiple currencies

We thrive when you thrive, dedicating our efforts to ensure our clients' success.
Dedicated account manager boasting over a decade of expertise
eCheck processing via Automated Clearing House (ACH)
Proven, widely acclaimed, and at the forefront of payment solutions
Placement of tens of thousands of merchants
Swift approval process for high-risk industries

Everything you Need to Know about Canadian Merchant Accounts

For Canadian entrepreneurs aiming to enhance their business operations by integrating credit card payment options for their customers, securing a Canadian merchant account is necessary. This account is key for businesses seeking to accommodate modern payment preferences, enabling them to process various cashless transactions including credit and debit card payments, as well as online and mobile payments efficiently.

Unlike their American counterparts, Canadian business owners face a more limited selection of merchant account providers, although the foundational requirements remain consistent across both countries. Despite this limitation, Durango Merchant Services extends our services across the border, offering Canadian businesses the opportunity to establish merchant accounts tailored to their specific needs and primary geographic market, whether that’s Canada, the USA or the EU.

Payment aggregators, such as stripe or square exhibit a low tolerance for chargebacks and payment disputes, posing a significant risk for businesses.

A Canadian merchant account does more than just process payments; it serves as a gateway for depositing these transactions into the business’s bank account. To support a wide range of operations, Durango Merchant Services providers furnish businesses with necessary hardware such as Point of Sale (POS) systems and credit card terminals. For businesses that are 100% ecommerce companies, 150 shopping cart integrations and virtual terminals present versatile options, allowing for payment processing via laptops, tablets, or smartphones.

What About Payment Aggregators like Stripe, Square and Paypal?

While payment aggregators like Square offer a seemingly straightforward path for Canadian businesses to accept payments, they come with their set of limitations. These aggregators typically provide a less robust framework compared to a dedicated merchant account, particularly concerning customizable fraud detection functionality. However, the bigger issue is payment aggregators are very sensitive to chargebacks and payment disputes, posing a significant risk for businesses. Utilizing such services may lead to sudden account freezes or terminations, leaving businesses with limited options for getting it back and potentially disrupting operations.

What is Your Primary Geographic Market?

The reason we ask this question is that we need to know if you are primarily marketing to consumers in the U.S., Canada or outside North America. This will help us determine which currency you are going to be processing in.

Canadian Market

If you’re targeting the Canadian eCommerce sector or operate as a retail merchant in Canada, we’ll connect you with one of our canadian based account managers to ensure your transactions are processed in Canadian Dollars (CAD). This approach guarantees you benefit from the lowest transaction fees, quickest funding times, and optimal logistical support tailored to the Canadian market.

US Market

For Canadian enterprises targeting the American consumer market, our approach focuses on bridging the gap between cross-border transactions and optimizing your payment processing capabilities. We understand that seamless financial transactions are crucial for expanding your business into the U.S. market. To facilitate this, we prioritize aligning your business with a U.S.-based payment processor. This strategic alignment is designed to enable your transactions in U.S. Dollars (USD), a critical factor for appealing to U.S. consumers and ensuring smooth, familiar transaction experiences.

EU Market

For those expanding into global markets beyond the U.S. and Canada, we partner with European Union (EU)-based banks to offer multi-currency processing capabilities, accommodating a wide range of international transactions. This strategic placement is designed to meet your specific business needs, regardless of your target market, ensuring efficient, cost-effective payment processing solutions. The later two options can come with US or Canadian based account managers, just let us know your preference if you have one.

U.S. banks often impose a 1% surcharge on international transactions.

Why Does it Matter Which Country My Processing Bank is Located?

Opting for a payment processor in the target transaction country offers dual benefits: it maximizes merchant profits and avoids international surcharges for your customers. For example, if your business operates from Canada and primarily markets to U.S. customers, utilizing a Canadian credit card processor could result in additional “cross border” fees from Visa & MasterCard, potentially increasing your transaction costs by 1-2% or more. Conversely, by choosing one of our preferred U.S.-based processors that accept Canadian signers, you can avoid these fees, securing the lowest possible rate for your transactions.

Moreover, U.S. banks often impose a 1% surcharge on international transactions. Therefore, if a Canadian merchant account processes payments for U.S. customers, these customers might face unwanted surcharges. To prevent this and ensure a seamless payment experience for your customers, partnering with a processor in your customer’s country—like utilizing a U.S.-based processor for U.S. transactions—can be a strategic move for Canadian businesses aiming at the U.S. market.

Is Your Bank Account with a US or a Canadian Banking Institution?

Payment processing companies classify certain types of businesses as “high risk” based on a number of factors, most of which boil down to the possibility that doing business with a merchant in that field will end up costing the financial institution money. There are a few reasons that nutraceutical merchant accounts are considered high risk. Below are some challenges and possible solutions to help you overcome the difficulties that can come with owning a nutraceutical merchant account.

Determining the Optimal Banking Partnership for Your Business:

Whether your operations target the U.S. or Canadian market can significantly influence your choice in banking and payment processing partnerships. For businesses focusing on the American market, leveraging a U.S.-based payment processor is essential to maximize processing efficiency and marketing ROI. Canadian merchants aiming to enter this space must secure a U.S. dollar checking account through U.S.-based banks amenable to Canadian signatories. We can guide you to such banks, known for offering Canadian companies and individuals easy access to low-cost or free checking and remittance accounts.

Conversely, if your business is oriented towards the Canadian market or operates as a physical store within Canada, selecting one of our Canada-based processing solutions will best serve your needs. This recommendation also extends to Canadian merchants engaging in sporadic transactions with American customers, as our local processors support USD processing and deposits into U.S.-based checking accounts. Furthermore, for those looking to facilitate Interac-based debit transactions, our Canadian credit card processing options stand as the prime choice, ensuring a comprehensive payment solution for merchants registered in Canada.

Which Shopping Cart & Payment Gateway Are You Utilizing?

To further tailor our services to your specific needs, it’s important for us to understand which shopping cart software you plan to use. Additionally, we need to verify the compatibility of your chosen shopping cart with the payment gateway associated with either our U.S. or Canadian payment processing banks. If you’re not employing a third-party shopping cart, you have the option to directly integrate with Durango’s payment gateway or utilize our “Virtual Terminal” for online transactions.

For applicants partnering with our U.S. processing bank: You'll find that Durango's payment gateway is highly versatile, supporting nearly all shopping cart software available on the market. Should there be a need, we also accommodate a selection of other gateway solutions.
For applicants working with our Canadian payment processing bank and processing in USD: You can take advantage of Durango's payment gateway, which supports the same range of shopping carts mentioned earlier, along with several other well-regarded gateway options, if necessary.
For those applying through our Canadian payment processing bank and processing in CAD: It's essential to use a shopping cart that is compatible with our CAD-specific gateway.

We’re here to assist you with any questions or concerns regarding our processing solutions. Don’t hesitate to reach out via phone or email. Our team is eager to support our neighbors.

At Durango Merchant Services, we’re committed to providing Canadian merchants with optimal rates and service. Leveraging both the U.S. and Canadian markets is vital for online retailers aiming to expand their sales and customer reach. By facilitating credit card processing for customers across borders, you enhance your business’s growth potential. Get in touch with us today to explore how we can assist you in getting started.

What types of Canadian companies does Durango Merchant Services work with?

While Durango Merchant Services is known for specializing in providing payment processing solutions to high-risk businesses, we can also place any type of merchant and have competitive rates for any category of business. The term “high-risk” can cover a broad range of industries, and it typically includes businesses that are subject to higher rates of chargebacks or fraud, operate in regulated industries, or face other types of financial risks that make traditional banks and payment processors wary of providing services. Here are some types of companies and industries that Durango Merchant Services typically works with:

Traditional Retail Businesses: This includes standard brick and mortar businesses such as clothing shops, restaurants, spas and health and beauty salons.
E-Commerce Businesses: Online retailers, especially those selling high-ticket items or operating in markets with higher chargeback rates
Nutraceuticals and Supplements: Companies selling dietary supplements, vitamins, and health-related products, often scrutinized for their claims and customer billing practices.
Subscription Services: Businesses that operate on a recurring billing model, especially those in industries with higher cancellation rates.
Travel and Timeshares: Companies in the travel industry, including vacation packages, airline ticket sales, and timeshare companies, due to the high cost of transactions and potential for cancellations.
Tech Support Services: Remote tech support businesses, particularly those offering services on a subscription basis, due to risks associated with fraud and high chargeback rates.
High-Ticket Items: Retailers selling expensive products, such as jewelry or electronics, where the high transaction value increases the risk.
International Sales: Businesses that sell goods or services internationally, facing cross-border transaction risks and currency exchange complexities.
Plus Many More....If it's a business we have likely placed it. Contact us even if you don't see your business on this list.

Range of prices for supplement & Nutraceutical merchant accounts:

Typical Terms in a Credit Card Processing contract:

Free Application Processing
Rolling reserve requirements that range from: 0% to10%
Variable contract lengths including availability of month to month
Direct financing with regular deposits
Minimum processing: $5,000/month minimum for US accounts, $50,000/month for international accounts
Maximum processing: How much can your business handle? $1 Million or more per month is something we do, but your ducks have to be in a row.

Apply Today

Dive Deeper Into Payment Processing for Canadian Companies

How Do I Integrate Durango Pay Gateway into My Business?

Durango Pay Gateway is a leading payment processing solution in Canada, known for its versatility and efficiency in e-commerce. It supports seamless integration with over 150 shopping cart platforms, including WooCommerce and Shopify, and is optimized for omni-channel retailing. The gateway features advanced fraud detection, chargeback management, and multi-currency capabilities, making it ideal for Canadian merchants aiming for both local and global market presence. This comprehensive solution simplifies transactions across various currencies, enhancing customer experience and facilitating international expansion.

How do I increase my credit card processing limits?

Looking to enhance your credit card processing limits in Canada? Our account managers can advise you on building a solid track record of reliable transactions and maintaining strong financial health for your business. We can help create a plan for reducing chargebacks. Ensuring a healthy bank balance is important for presenting your business positively to payment processors. We recommend having open conversations with your account manager about your growth plans, so we can help you in obtaining better terms as your business expands across the Canadian and International market.

Additional benefits of our payment processing service for Canadian businesses:

Upon securing approval for a Canadian merchant account through Durango Merchant Services, you’ll gain access to a suite of additional tools & perks we provide. We are equipped to enhance your operations with e-commerce solutions and recurring billing services through our user-friendly online portal, plus omni-channel capabilities, including a POS and mobile card reader technology. Moreover, businesses will unlock the following extra benefits:

Integration with 150+ Shopping Carts
Robust Chargback prevention and Management tools
eCheck Processing through ACH
Industry Leading Fraud Detection & Prevention Tools
Dedicated Account Manager with a Decade or more of experience in the payment processing industry.

Durango Merchant Services is here to help secure your Canadian Merchant Account:

Our dedicated team has negotiated on behalf of more than 35,000 clients. We understand the back and forth and give and take of negotiating processing accounts for high risk merchants, including hundreds of credit repair merchant accounts.

We know that there aren’t always easy answers. But remember, there is almost always a way forward and if you can make it through the first 3 years with a good track record, life will become much easier and your business will be better for it. Read our guide to how to apply for a credit repair merchant account below.

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