Frequently Asked Questions
This section is intended to be more than just an F.A.Q. section for our own services, but rather a comprehensive guide to the payment processing process. For more indepth topics and answers, then please visit our ARTICLES section. If there is a question that you don’t see an answer to, please feel free to Contact Us and we will add it to our database.
Q. What is a merchant account, and do I need one?
A merchant account is set up with a financial institution or an ISO (independent sales organization) in Canada, which allows you to accept credit card payments directly from your customers. Unlike most third-party services (like PayPal, Google Checkout, etc), money collected through your merchant account is directly deposited into your business bank account within 1 to 2 business days. You need a merchant account if you want to take debit and/or credit card payments from your clients using your own business name, and having the money deposited directly into your business checking account.
Q. Do you offer merchant account or payment processing services to businesses outside the Canada?
Yes, most of our B2B Services are available in North America. Take a look at our Localized Online Advertising Platform and Merchant Cash Advance Services.
Q. I don’t have a website. What if I want to process sales offline?
You can use a terminal to “swipe” credit card sales as they happen (card present sales) or you can use a PC & Internet System or Phone Authorisation System to process sales manually if you do mostly mail order and/ or phone order sales/ non-traditional retail.
Q. How long does it take to get set up?
From the time we receive your application, it generally takes 6-8 business days to receive your approval. If you are ordering a debit/credit terminal, it is shipped out upon approval, and will generally reach you within 6 business days. You can begin processing as soon as you have received your designated product. For non-terminal merchant accounts, it may take 12-15 bus days.
Q. How long does it take to receive our funds once an order is processed?
Funds are deposited directly into your business bank account, within 24 – 48 hours during regular business days. Not including Saturdays, Sundays and Holidays.
Q. What if I don’t get approved?
We have a 90% approval rate, so it’s very unlikely that you wouldn’t get approved. We will go over all the details of your business before you apply, so we will do our best to be sure that you will get approved. We can guarantee the debit only option and financing on all Point-of-Sale Terminals will be approved- 100% regardless of credit score. However, no or poor credit history will effect financing costs.
If you know that your credit is poor (bankruptcy in last few years, missed bill/ debt payments, etc.), then you will need a Co-Signer to get credit card acceptance approval and you will end up paying more if financing equipment.
Q. How do I accept credit cards online?
You will require an e-commerce merchant account. All the products we offer are compliant with the latest regulations. If you are having trouble deciding which product to use, we will be happy to help. Simply fill out our Free Quote form and we’ll be in touch!
Q. Do I Need a Shopping Cart for Online Sales?
Most internet businesses do use shopping cart software to make the sales process easier for customers. You can choose from many different shopping cart programs. We can recommend shopping cart services just simply fill out our Free Quote form and we’ll be in touch!
Q. Why are there different rates for different accounts?
The rates for merchant accounts vary based on the amount of risk involved in the transaction. The accounts with the low rates will always be the ones where the customer is present, the card is swiped, and a receipt signed in a face to face transaction. The credit card processors view these types of transactions to be fairly low in risk for fraud, whereas internet transactions and transactions where orders are taken by phone or mail are generally considered higher risk since the customer is not present and the card is not in hand. Think of the credit card company as ‘lending’ you money to pay for your products on your customer’s behalf, before getting their money from the customer. And in that exchange, you get to sell to the customer your product or service immediately, regardless of whether a customer has money on them physically or not.
Q. What is the difference between qualified, mid-qual, and non-qual transactions?
Qualified Discount Rate is applied for all transactions meeting the “normal” operating guidelines as outlined below:
* Retail (Terminal) Merchants
Magnetically swiped & electronically authorized charges
* Internet / MOTO Merchants
Mid-Qualified Discount Rate is applied for all transactions meeting the operating guidelines as outlined below:
* Retail (Terminal) Merchants
Manually keyed orders using on Visa and MasterCard transactions. * Internet / MOTO Merchants
There is a mid-qualified rate for Internet / MOTO merchants.
Following Card Types:
-corporate/ business cards
Non-Qualified Discount Rates is applied for all transactions meeting the operating guidelines as outlined below:
* All Merchants
High Risk Merchants
Following Card Types:
-Procurement cards (Government)
-Visa Signature cards
-MasterCard World cards
*More difficult to determine cards that fall under this category since the rebranding of rewards/ corporate cards such as Mosiac & Infinity. Can’t even tell knowing the card type, because the balance and spending pattern has to reach a certain treshold to be deemed ‘non-qualified’
NOTE: Some companies group reward cards under non-qualified, so you can have the exact looking program (every single fee the exact same) from company A compared to company B, and you’ll pay a lot more in the end. If they group the card type as “non-qualified”, then it doesn’t matter if it is swiped, it will be charged more. Mid and Non Rates can be as low as 0.5% to as high as 1.85% on top of your Qualifed Rate. Some companies categorize keyed-in transactions as mid-qualified and corporate as non-qualified and some have the opposite, keyed-in as non’s and corporate as mid’s.
Q. What is a Chargeback?
A chargeback occurs when a customer disputes a charge on their statement by contacting the credit card company instead of contacting you. If a customer does not recognize the charge on their statement, or if they believe the amount was wrong, they may call their credit card company and ask them to investigate. Thus begins the chargeback. The burden of proof is always on the merchant and if you lose a charge back case the customer will be refunded their money and typically the business will be charged a charge back fee (Typically $15-$50). There is a great forum on this topic at merchant911.org. It’s absolutely free and they will provide you with tools and information to help you cut down on the amount of chargeback and fraudulent orders you will receive.
Q. Please explain the monthly minimum?
A. The monthly minimum for your merchant account is derived from your processing fees. The minimum is typically $10 per credit card, so if you carry both visa and master card the minimum would be $20. If you have debit acceptance, then you may be charged $10 min on your debit volume each month. The actual amount of processing to achieve that minimum will depend upon your discount rate. For example, if you have a discount rate of 2% and you process a transaction for $100, then $2.00 in processing fees will be taken from that transaction and applied towards your monthly minimum of $20. If, at the end of the month, you have not processed enough transactions to cover the minimum fee, you will be charged the difference.