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7 Best Payment Gateways In Canada For Small Businesses

By Storeplum Editorial

Posted | 2 min read

7 best payment gateways in Canada

A Payment gateway is the most crucial part of any ecommerce website as it directly enables merchants to sell from their online stores to millions of shoppers across the globe.

But, not all payment gateways offer similar functionalities. Some are better for domestic transactions, others are specifically built for international transactions, some offer more payment options and so on.

With the boom of social commerce, new payment options like buy now pay later or BNPL are quickly on the rise. With so many options around, it is overwhelming for merchants to select the right payment gateway for their business.

If you are a Canadian merchant looking to set up a payment processing system for your online business, then this article can guide you. We have compiled a list of top 7 payment gateways in Canada for you so that you can make an informed decision while choosing one for your business. Let's go-

Top payment gateways and payment processors in Canada

Moneris

Moneris is a leading payment processing solutions for credit and debit card transactions in Canada. Apart from its POS solutions for retail, Moneris offers a multi functional payment solution for ecommerce business owners. The company makes it easy to accept payments in multiple currencies with the help of its comprehensive checkout page.

Payment options supported by Moneris

  • Credit cards
  • Debit cards
  • Digital wallets
  • Paypal

If you opt for only payment solutions for your online store, then Moneris charges anywhere between 1-2% based on the payment method. If you use the entire suite of POS terminals and related solutions, the pricing starts from $79/month.

ProsCons
Comprehensive checkout pagePricing is not very clear.
Developer friendly integrationsMonthly charges for the entire payment solution
Multi currency support.Time to onboard a new merchant is above average.
Built in capabilities like fraud detection and prevention-

Square Payments

Square payments build the point of sales terminals, its related software and the ability for users to pay directly from their phones at retail outlets, restaurants and online. Square was founded in 2009 by Jack Dorsey with a mission to make commerce easy for merchants. There are about 2 million active merchants on Square as of 2020. Square is available in only five countries including The United States, The United Kingdom, Canada, Australia and Japan.

The following payment methods are supported by Square-

  • Credit cards
  • Gift cards
  • Cash
  • Check
  • Payment links

Square charges 2.9% + 30¢ per transaction when used for payments for online store. There are additional fees for manually added transactions into Square powered terminals as they possess a higher risk of fraud and chargebacks. More information on Square payments pricing can be found here.

ProsCons
Ease of use and simple setupSuitable for retail merchants with it's complete suite of payment solutions
Timely settlementsLess flexible with customizations
Multiple options of payment methodsSteep learning curve
Supports invoice creation and inventory managementHigh pricing as volume increases

Stripe

Stripe is a leading payment gateway services company with headquarters in South San Francisco, California, United States and Dublin, Ireland. The company offers payment processing software and application programming interfaces (APIs) for e-commerce websites and mobile applications.

There are over 3.1 million websites worldwide which accept payments from their customers through Stripe's payment system.

With Stripe, merchants can immediately start accepting payments from over 100 countries. As of 2021, Stripe supports the following seamless payment methods-

  • Credit cards
  • Debit cards
  • Wallets (Google pay, Apple pay, etc)
  • Bank redirects
  • Cash vouchers
  • Buy now pay later

This gives shoppers the flexibility to choose from a payment method which is most convenient to them. Besides this, the company also offers a fraud protection tool at an additional fee per transaction. Merchants with high volumes of transactions (over $5000 per month) benefit heavily from such tools which help them chargebacks and credit card fraud liabilities.

Stripe payment gateway charges a flat 2.9% + C$0.30 as transaction fee

ProsCons
No monthly feesNot available in all countries
PCI Service Provider Level 1 compliant. Best in class securityInstant deposits at an additional costs.
Built in fraud detection and resolutionDoes not support popular payment methods outside North America
Developer friendly API-
Plug and use UI components for non-tech teams.-
Product inventory management-

Paypal

Paypal has become the most widely used digital payment platform in the world. In 2020 alone, PayPal processed over 15 billion transactions. As of 2021, there are over 29 million active PayPal merchant accounts.

Paypal supports the following types of payment options-

  • Credit cards
  • Digital wallet
  • Loan
  • Bank redirect
  • Deferred payments
  • Buy now pay later

Using an online payment service like Paypal will cost you 2.90% + fixed fee per transaction for domestic transactions in Canada. Additional percentage fee of 1.5% is charged for international transactions. For more details on Paypal fees, visit here

ProsCons
Extremely easy to integrate.High transaction fees.
Developer friendly APILonger settlement duration
A de facto standard for a long time to accept donations, fundraisers, etcEasy target for phishing and scams
Easy to send and receive money from friends and family-
Supports currencies from almost all countries.-
Extremely easy to integrate.-

Authorize.net

Authorize.net is one of the earliest digital payment gateway providers in the market. Today, the payment gateway is used by over 450,000 merchants and crosses over 1 billion transactions annually. Apart from its regular services, Authorize.net also offers billing subscriptions, fraud detection and one page checkout options for merchants.

Payment methods supported by Authorize.net-

  • Credit cards
  • Digital wallets
  • Bank debit
  • Bank transfers
  • Check

Authorize.net charges a monthly fee of $25. Besides, they charge they charge 2.9% + 30¢ per transaction. This makes Authorize.net the first one in our list which charges a flat monthly fee.

ProsCons
Simple dashboardMonthly fees for account maintenance
Developer friendly integrationsRequires a merchant account by default
International currency supportNo plug and use components like Stripe and Paypal
Fraud protectionUser experience is a challenge

Afterpay

Afterpay is another payment gateway services providing company which offers buy now pay later offerings for shoppers. Headquartered in Australia, the company provides its services in The USA, Canada, UK, Australia and New Zealand. There are over 150,000 merchants using Afterpay worldwide.

Payment options supported by Afterpay-

  • Credit cards
  • Debit cards

Afterpay charges a variable fee between 4-6% plus 30 cents per transaction. In general, a majority of BNPL services will charge in the same bracket as their offerings are free for shoppers if they pay back on time.

ProsCons
Inherent pros of buying now and paying laterNo provisions for rescheduling payments
Improved store conversionsRefund process is time consuming
Multiple custom integrations-

Sezzle

Sezzle is an alternative payment gateway service provider offering interest free loans for online shoppers. The BNPL provider was founded in 2016 and caters to The USA and Canada. About 50,000 merchants use Sezzle as an alternative payment option for their customers. Overall, the company has a total transaction volume of over 2.5 billion USD.

Payment options offered by Sezzle-

  • Credit cards
  • Debit cards

Given its buy now pay later business model, Sezzle charges 6% plus 30 cents as transaction fees for each purchase. More payment information with Sezzle can be found on their website.

ProsCons
Integrations with popular ecommerce platformsRefunds incur additional fees
Options for custom integrationsMerchants need to manage order refunds completely
Built in rewards program for customer retentionSuitable for online merchants with it's complete suite of payment solutions
More incentives for users to purchase right now by just paying 25% of the product value immediately.-
Ease of use and simple setup-

FAQs

What payment method does Canada use?

Credit and debit cards are the most popular payment methods preferred by Canadians.

Is there Paypal in Canada?

Yes, Paypal offers both personal and business accounts for users and merchants in Canada. Paypal charges 2.90% + fixed fee per transaction for merchants.

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Storeplum Editorial

Storeplum Editorial

Storeplum's in-house editorial team brings to you the best content when it comes to growing your online business on the Internet. We write about growth hacks, case studies, government schemes and other related information for e-commerce business.

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