Credit Card Processors in Canada

1. Independent Sales Organizations (ISO)

2. Financial Service Providers

For E-commerce businesses in Canada there are three types of credit card processors you can turn to:

1. Independent Sales Organizations (ISO)

2. Financial Service Providers

3. Third Party Merchant Account Providers

An Independent Sales Organization (ISO) is a registered merchant service broker who represents one or more merchant account providers. They set-up and service businesses with card processing, but rarely handle the actual processing.

A Financial Service Provider in Canada will refer you to their sister Merchant Account Company. Generally speaking in Canada this will be one of the following:

CIBC = Global Payments

Scotia Bank = Chase-Paymentech

Royal Bank = Moneris

BMO = Moneris

TD CanadaTrust = TD Merchant Services

NOTE: A couple more large independent merchant account providers would First Data and NOVA Systems.

A Third Party Merchant Account Provider is a company that solely focuses on processing credit cards. Online Third Party companies would be PayPal, Google Checkout, 2CheckOut, etc. and are usually only used for online transactions.

Special Note: You can also acquire merchant account services through Small Business Trade Associations usually offering competitive discounts.

These organizations still use the services of an ISO’s or Financial Service Providers, they just pre-negotiated lower rate discounts on your behalf, because it helps them provide an incentive for businesses to join their membership and gives the merchant service vendor a certain secured business every year.

However, it is not necessary to join a Small Business Trade Association to acquire competitive rates.

Click on the following link for a quotes from credit card processors.

Read Part 3: Qualifying for Merchant Accounts