David talks about the most important things for small businesses to keep in mind when setting up credit card processing. This includes staying away from long term contracts, avoiding cancellation fees, putting your best foot forward for approval, getting lower rates, having automatic rate reductions built into your agreement, and addressing technical concerns so everything works smoothly upon launch.
In the latest episode of our merchant education series we tackle the seemingly simple topic of costs. In addition to exploring the discount rate and interchange costs, we outline and provide some metrics for the actual rate you should be willing to pay for your business.
Why do some businesses get lower credit card processing costs than others? In this video David explores the criteria that cause some businesses to get lower rates than others and techniques that you can use to reduce your processing costs.
If you've ever been confused by the difference between a merchant account, a payment gateway and processor you are not alone. In this discussion we break down the role each of those elements play, and how they affect your overall processing costs.
In order to accept credit card payments a business needs a merchant account. In this article we explain what a merchant account is, how to get one for your business, and the costs involved.
There is a lot of confusion when it comes to pricing in the payments industry. The most important cost of all is the discount rate. Learn what the discount rate is and why it's the most important and significant cost when processing credit card transactions.
Making the wrong choice can be costly when choosing a payment processor. David explores 3 of the most common mistakes so you can avoid them when choosing your credit card processor.
If you've not accepted credit cards previously you may wonder how long it takes to get your money. In this video David explores the most popular funding schedules for e-commerce and brick-and-mortar merchants.
How to pick a good credit card processor for your business. David gives advice so you can ask the right questions, avoid mistakes, and figure out which payment processors have the potential to be a good solution for your business.
When you work with a payment processor it becomes a long-term partnership. It requires a deep integration if you're doing e-commerce payments, and will have a long-term cost impact on your business. Outages are problems along the way can cause a major issue. In this video David explains when and how to look for references when searching for a payment processor for your business.
An original credit transaction is where a merchant sends money (gives money) to a cardholder. It's a unique service, but merchants should be very careful when using it.
MCC stands for Merchant Classification Category. Every type of business that accepts Visa or Mastercard has a MCC code associated with their business. David explains why the MCC code used for your business can impact the approval rate for your transactions (the wrong MCC code can result in more declined transactions), as well as the costs that you pay when opening your merchant account.
Certain types of businesses are more difficult to administrate from a payment processing perspective than others. In this video David explains what Visa HBR and Mastercard BRAM fees are, how much they cost, and why they apply to some businesses but not others.
Can I Accept Interac Debit Cards Online?
Key Takeaways
1
Interac debit cards
Interac is the most popular type of debit card issued in Canada. These cards were originally intended for in-person use and cannot be used to purchase online in the same way as a credit card.
2
Co-Branded Cards
Since Interac debit cards can't easily be used online, many Interac cards are now issued co-branded with a Visa or Mastercard. These cards have both an Interac and a Visa or MC logo on it. Co-branded cards can be used online like a regular Visa or Mastercard.
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Interac
Many merchants ask whether it's possible to accept Interac cards online at their e-commerce store. When they ask this question, they usually phrase it "Can I accept debit cards online?".
In Canada, accepting debit cards online means something very different than in a lot of other areas of the world. The Canadian debit card system is called Interac, which is an association run by a group of banks. It's a different type of payment card than a Visa or a Mastercard. It's accepted almost everywhere in Canada in traditional brick-and-mortar (in-person) settings.
However, it wasn't originally intended to be used online. You cannot type the number of an Interac card into a computer screen in order to process an Interac payment. It simply doesn't work this way.
Interac cards also can't be used at most point-of-sale machines when travelling outside of Canada. It will work at some ATMs internationally. These limitations have led to a special type of Interac cards being issued that function like a traditional credit card.
Interac Cards co-branded with a Visa or Mastercard Logo
In order to address some of these shortcomings, banks have started issuing Interac cards that also (on the same card) will have either a Visa or Mastercard logo. When you look at your debit card, does it have just the Interac logo, or does it also have a Visa or Mastercard logo?
If it has both logos, it means it's a co-branded card, and it can be used online just like any normal Visa or Mastercard. That's because when the card is used in a card-not-present scenario (like an e-commerce or over the phone purchase) the transaction runs on the Visa or Mastercard rails like a normal credit card transaction.
Can I process pure Interac debit cards online?
As above, an Interac card needs a Visa or Mastercard to be used online like a traditional e-commerce transaction where you just the the card number and expiry date in.
The question you may be asking is: "Can I process pure Interac debit cards online"? Technically speaking, Interac does allow for online purchases. However, the checkout process requires the user to log into their online banking, much like an Interac e-mail money transfer. These are not at all like a credit card purchase. It's not a seamless transaction because the customer must be redirected to their banking website, and will have to login to their online banking. This is intrusive and cumbersome when compared to a credit card purchase. If the user doesn't have their online banking login and password handy they won't be ablet to complete the purchase.
Summary
Asking if Interac debit cards can be accepted online is a very simple question. For such a simple question, there's a fairly complicated answer. Can Interac debit cards be used online? Yes and no.
No if it's a pure Interac debit card.
Yes if it's a co-branded card yes with a Visa or Mastercard badge.
Yes if you are using a service such as Interac Online payments, but that's where your customer will need to login to their online banking. This is probably not what you meant when you asked if an Interac debit card can be accepted on the checkout page of your e-commerce store.
If you want to get a quote to accept co-branded Interac cards at your online store, or even for Interac Online processing, reach out to us at Merchant-Accounts.ca.
David talks about the most important things for small businesses to keep in mind when setting up credit card processing. This includes staying away from long term contracts, avoiding cancellation fees, putting your best foot forward for approval, getting lower rates, having automatic rate reductions built into your agreement, and addressing technical concerns so everything works smoothly upon launch.
In the latest episode of our merchant education series we tackle the seemingly simple topic of costs. In addition to exploring the discount rate and interchange costs, we outline and provide some metrics for the actual rate you should be willing to pay for your business.
Why do some businesses get lower credit card processing costs than others? In this video David explores the criteria that cause some businesses to get lower rates than others and techniques that you can use to reduce your processing costs.
If you've ever been confused by the difference between a merchant account, a payment gateway and processor you are not alone. In this discussion we break down the role each of those elements play, and how they affect your overall processing costs.
In order to accept credit card payments a business needs a merchant account. In this article we explain what a merchant account is, how to get one for your business, and the costs involved.
There is a lot of confusion when it comes to pricing in the payments industry. The most important cost of all is the discount rate. Learn what the discount rate is and why it's the most important and significant cost when processing credit card transactions.
Making the wrong choice can be costly when choosing a payment processor. David explores 3 of the most common mistakes so you can avoid them when choosing your credit card processor.
If you've not accepted credit cards previously you may wonder how long it takes to get your money. In this video David explores the most popular funding schedules for e-commerce and brick-and-mortar merchants.
How to pick a good credit card processor for your business. David gives advice so you can ask the right questions, avoid mistakes, and figure out which payment processors have the potential to be a good solution for your business.
When you work with a payment processor it becomes a long-term partnership. It requires a deep integration if you're doing e-commerce payments, and will have a long-term cost impact on your business. Outages are problems along the way can cause a major issue. In this video David explains when and how to look for references when searching for a payment processor for your business.
An original credit transaction is where a merchant sends money (gives money) to a cardholder. It's a unique service, but merchants should be very careful when using it.
MCC stands for Merchant Classification Category. Every type of business that accepts Visa or Mastercard has a MCC code associated with their business. David explains why the MCC code used for your business can impact the approval rate for your transactions (the wrong MCC code can result in more declined transactions), as well as the costs that you pay when opening your merchant account.
Certain types of businesses are more difficult to administrate from a payment processing perspective than others. In this video David explains what Visa HBR and Mastercard BRAM fees are, how much they cost, and why they apply to some businesses but not others.
Need professional guidance? Contact us for a free one hour consultation.
Can I Help Lower Your Processing Fees?
If you found this content helpful, will you give me the opportunity to quote on your business?
My name is David Goodale, CEO at Merchant Accounts.ca. I launched our business in 2001 and have over 20 years of expertise in the field of online payments. If you have a payments related question or project, and especially if it relates to multi-currency or international e-commerce don't hesitate to contact me. I'm always happy to help with an honest opinion, and enjoy chatting with folks from interesting businesses.
