Payment gateways for Canadian merchants

Selecting the right payment processor for your Shoplazza store is one of the most important decisions you'll make as a merchant. It's essential to choose a payment processing solution that fits your business model, is reliable, and doesn't impose unreasonable fees on you. But with so many payment solutions available in Canada, finding the right one can be overwhelming.

To help simplify the selection process, it's essential to look for a payment processor that is flexible and doesn't have too many rules. Avoid payment processors that require you to keep a portion of your money as a security deposit after each sale. Additionally, ensure that the payment processor provides you with both a merchant account and a payment gateway without additional charges. This will not only save you money but also make the checkout process smoother for your customers.

To make an informed decision, we highly recommend reading the introductory article on payment gateways before continuing with this discussion. This will help you familiarize yourself with important concepts and topics. In this article, we will explore four of the most popular payment gateways for Canadian merchants that are supported by Shoplazza. Additionally, we have prepared an extensive guide to assist you in selecting the right payment processor for your Shoplazza store.


This guide is intended for Canadian merchants who plan to sell their products or services domestically as well as internationally. The information provided in this article is intended for general knowledge purposes only. While we strive to ensure accuracy, payment processing details and policies may vary among different providers. For precise and up-to-date information, we strongly recommend reaching out to each respective payment provider directly. They will be able to provide you with the most accurate and specific details regarding their services and requirements.


Popular payment gateways supported


Stripe  , a widely adopted payment system by Canadian merchants, empowers them to seamlessly process online payments from customers. This versatile platform enables you to accept payments in various currencies, including credit and debit cards issued by American Express, Diners Club, Discover, Mastercard, or VISA. When utilizing Stripe, a transaction fee is incurred for each payment processed, with the amount dependent on factors such as the customer's location and currency, as well as your transaction volume. You can find more information on Stripe's pricing and fees for Canadian merchants   on their website.

Stripe’s plan only charges when you make a sale. Each successful transaction will cost you a flat 2.9% + $0.30 CAD per transaction. You only pay for what you use, without incurring any additional expenses such as setup fees, monthly charges, or concealed costs.

Benefits of using Stripe:

  • Easy integration: Stripe is easy to integrate into your online store, whether you're using an e-commerce platform or building a custom website. With its easy-to-use APIs and developer tools, you can quickly add Stripe as a payment option to your website or mobile app.
  • Wide range of payment options: Stripe allows you to accept payments in multiple currencies, including credit and debit cards, Apple Pay, Google Pay, and other local payment methods. This provides a range of options for your customers, making it easier for them to pay and complete their purchase.
  • Transparent pricing: Stripe's pricing is transparent and easy to understand, with no hidden fees or long-term contracts. You only pay for the transactions you process, and there are no setup fees, monthly fees, or cancellation fees.
  • Security: Stripe uses advanced security measures to protect your customers' payment information and transactions. This includes advanced encryption techniques to protect against unauthorized access, as well as fraud detection and prevention measures.
  • Fast payouts: With Stripe, you can receive your payouts quickly, with funds typically transferred to your bank account within 2 business days.
  • Customization options: Stripe offers a range of customization options, including customizable checkout pages and the ability to add your own branding to the payment process.

No contracts or monthly fees are key when you’re just starting out. This helps keep overheads at a minimum, a clear benefit for new businesses.

Stripe breakdown:

  • Domestic (Canada) payments 2.9% + $0.30 CAD per transaction
  • International payments cost additional 0.6% per transaction (+2% conversion rate if necessary)
  • No setup, monthly or hidden fees
  • Accept payments from credit/debit cards, local payment methods (Interac) and digital wallets (i.e. ApplePay)
  • Fixed rates across all payment methods
  • Rates are negotiable (down to 2.2%) after processing over $100K/month
  • Chargebacks $15-$20 depending on who wins the dispute


Please keep in mind that these fees are subject to change, and Stripe may offer different pricing plans or customized rates for certain businesses. It's always recommended to check the Stripe website or contact their sales or support team directly for the most accurate and up-to-date information specific to your business.

In any case, Stripe is a reliable and user-friendly payment service provider that offers a range of features and benefits for Canadian merchants. Its transparent pricing, easy integration, and security features make it an attractive option for online businesses of all sizes.

To add Stripe to your store, click here.


PayPal   is also a widely-used payment system that many Canadian merchants use to process online payments from their customers. Their system allows you to accept payments in multiple currencies, including credit and debit cards, bank transfers, and even balance transfers. Transaction fees are charged for each payment processed, which can vary based on factors like the customer's location, the currency involved, and the volume of transactions. You can find more information on PayPal's pricing and fees for Canadian merchants   on their website.

It’s completely free of overheads, costing you only the flat rate fee of 2.9% + $0.3 per transaction.

Similar to Stripe, you only pay when you make a sale. No monthly, setup or any other additional fees, which makes it the PayPal’s simplest option.

By using PayPal, you can enjoy the benefits of a simple and streamlined checkout process with no additional fees, aside from transaction fees  . While redirecting customers to another site during checkout may have potential drawbacks, it's important to keep in mind the convenience and cost-effectiveness of using PayPal. However, it's important to look into the fees associated with using PayPal. While there are no additional fees for the checkout process itself, PayPal does charge transaction fees based on the amount and type of transaction. These fees can vary depending on the country, currency, and type of account you have. It's essential to research and understand the specific fees that apply to your business before implementing PayPal as a payment option. By being aware of the fees, you can accurately assess the cost-effectiveness of using PayPal and make informed decisions regarding your payment processing methods.


Please note: Depending on your account type, PayPal offers the option to customize your checkout process. One such feature is the express checkout, which allows your customers to buy products quickly. This feature sets PayPal apart from many other payment providers, as it provides a unique and convenient way for customers to make purchases on your website. You can learn more about PayPal's express checkout feature here  .

Breakdown of PayPal:

  • Domestic (Canada) payments 2.9% + $0.3 per transaction
  • Payments from the US 3.7% + $0.3 per transaction
  • International payments (outside CA and the US) 3.9% + a fixed fee depending on the country
  • No startup costs, no termination fee, no monthly fees
  • Includes processing all cards as well as PayPal payments

Overall, PayPal is a widely recognized and trusted payment system that offers a range of security features, as well as pricing options, to meet the needs of Canadian merchants.

To add PayPal to your store, click here.


Please note that PayPal Pro is currently not supported on Shoplazza.


Another popular and reliable payment processing solution for Canadian e-commerce websites is Moneris  . It is a leading payment processor in Canada, serving over 350,000 merchants, and it offers a range of services to meet the needs of different businesses, including online payment processing, mobile payments, and point-of-sale systems.

At Shoplazza, we support transactions exclusively for Visa and Mastercard. By prioritizing these major credit card networks, our platform enables businesses to seamlessly process payments from a diverse customer base.

Moneris also has a strong fraud detection and prevention system, which can help protect your business and your customers from fraudulent transactions. They employ advanced security measures such as tokenization and encryption to ensure that sensitive payment information is kept secure. As a result, businesses using Moneris can rest assured that their transactions are secure and compliant with industry standards.

In addition, they have a good reputation for reliability and customer service. They offer 24/7 technical support, as well as resources and tools to help merchants manage their payment processing needs. This can be especially valuable for businesses that rely on their payment processing system to run smoothly and efficiently.

Moneris’ pricing model is entirely quote-based. That means each business will get different terms and pricing depending on the size, industry, processing volume, etc.

With that being said, Moneris can be a great payment processing solution if you have very large processing volumes and can anticipate where your transactions will come from.

However, it's important to note that in some cases, Moneris locks clients with a 3-year contract and their service may come with many additional/hidden fees. Some of these fees can be waived to keep your costs down, but you have to be a strong negotiator and know what you’re doing.

Here are some of the fees to be aware of:

  • Monthly fee $39.95 + HST
  • One-time setup fee (non-refundable) @ $150 + HST
  • Transaction fees for MasterCard / VISA @ 1.6% + $0.05
  • Transaction fees using AMEX @ 2.0% + $0.05
  • Chargeback fee $25
  • Charge extra of $10 for a virtual terminal (which you can use to manually input credit card details into the system)
  • PCI compliance fees
  • Early cancellation fees
  • Deposit fees, etc.

Just remember to take these fees into account and negotiate to keep your costs down. If you want to try Moneris, it's best to contact their sales and request a quote. It may take some time before you get a reply, and then some more time to get approved and finalize the setup on your e-store.

Despite very competitive rates, Moneris may not be the best fit if you're just starting with e-commerce. It works best for more established businesses with large transaction volumes. Also, if you're running both an e-commerce and a physical store, Moneris may be the right solution for you.

Moneris payment processor breakdown:

  • Transaction rates are different for each card brand. They are negotiable and determined for each client.
  • Setup fee (~$150 + HST)
  • Monthly fee (~$40 + HST)
  • Many additional fees such as compliance fee, deposit fee, etc. (some can be waived through negotiation)
  • Chargeback fee (~$20)
  • Minimum processing volume (~$20/month)
  • Virtual terminal requires an additional $10

Generally speaking, Moneris is a great choice for Canadian e-commerce websites that need a secure and efficient payment processing solution. However, it's always a good idea to compare different payment processing options and choose the one that best fits your business's needs and budget.

To add Moneris to your store, click here.


Klarna   is a popular payment processor that offers a range of payment options and financing solutions for customers in various countries, including Canada. However, the suitability of Klarna as a payment processor for Canadian merchants may depend on a variety of factors, such as their business needs, the type of products or services they offer, and their target market.

Some Canadian merchants may find Klarna to be a good choice because it can help increase sales by offering flexible payment options to customers, including buy now, pay later options. Klarna also provides protection against fraud and chargebacks, which can be a significant concern for online businesses. In addition, Klarna offers seamless integration with many e-commerce platforms, making it easy for merchants to set up and use.

However, Canadian merchants should also consider the fees associated with using this service. Klarna charges a processing fee of 0.30 for each transaction, which may seem relatively low, but there is also a variable fee that can go up to 5.99% depending on the specific service chosen by the consumer. These transaction fees can add up, especially for merchants processing a high volume of transactions, and should be taken into account when evaluating the overall cost of using Klarna.

Klarna's fees vary depending on the payment options offered and the country in which the merchant operates. In Canada, Klarna offers three main payment options: Pay in 4, Pay in 30 days, and Financing.

Here is a breakdown of the fees associated with each option:

  • Pay in 4: This payment option allows customers to split their purchase into four equal payments, with the first payment due at the time of purchase and the remaining payments due every two weeks thereafter. Klarna charges a processing fee for each transaction, which can vary depending on the merchant's agreement with Klarna. According to Klarna's website, the processing fee is typically 3-5% of the purchase amount.
  • Pay in 30 days: This payment option allows customers to defer payment for 30 days after the purchase is made. Klarna does not charge any interest or fees for this option, but the customer is expected to make the full payment on or before the due date.
  • Financing: This payment option allows customers to finance their purchase over a longer period, typically 6-36 months, depending on the merchant's agreement with Klarna. Klarna charges a fixed interest rate on the financing amount, which can range from 9.99% to 29.99%, depending on the customer's creditworthiness and the length of the financing term.

It's worth noting that Klarna's fees may be subject to change, and merchants should check with Klarna directly to confirm the specific fees and terms associated with each payment option.

Ultimately, the decision to use Klarna or any other payment processor should be based on a careful consideration of the business's needs and objectives, as well as an understanding of the costs and benefits associated with the service.

To add Klarna to your store, click here.


Exploring additional payment gateways

In addition to the widely-used payment gateway methods mentioned earlier, Shoplazza offers seamless integration with other renowned payment gateways, including Adyen,, Oceanpayment, and Payoneer. These gateways are particularly favoured by international merchants for their global reach and can also be utilized by merchants in Canada.

Feel free to explore the following payment gateways for more information:

By leveraging these options, you can expand your payment gateway capabilities and cater to a broader customer base.


This guide is intended for Canadian merchants who plan to sell their products or services domestically as well as internationally. The information provided in this article is intended for general knowledge purposes only. While we strive to ensure accuracy, payment processing details and policies may vary among different providers. For precise and up-to-date information, we strongly recommend reaching out to each respective payment provider directly. They will be able to provide you with the most accurate and specific details regarding their services and requirements.

Things you should know about payment processing in Canada


To reduce shopper friction, Canadian businesses selling online often accept payments in USD. However, the importance of ensuring these payments are deposited into their bank account in the same currency is frequently overlooked, leading to costly mistakes. For example, John and Jane run a small business selling handmade crafts online in Canada. They want to expand their customer base and decide to start accepting payments in USD to make it easier for their American customers to buy from them. However, they forget to specify to their payment processor that they want their payments deposited in USD and instead set their bank account to CAD. As a result, their payments are converted from USD to CAD during the deposit process, and they end up losing money on each transaction due to the unfavorable exchange rate. This mistake leads to significant losses for John and Jane, which could have been avoided if they had ensured that their payments were deposited in USD, such as by opening a USD account with their bank. By doing so, they would have been able to receive payments in USD directly into their USD account, without incurring any conversion fees or unfavorable exchange rates.

Canadian businesses can save approximately 3% on each transaction by ensuring deposits are made in USD—a significant expense that is often overlooked. Settlement currencies should be an important consideration for businesses processing transactions in USD, as it can save up to 50% or more in processing costs.

Visa, Mastercard and American Express Credit

In Canada, Visa and Mastercard are the most commonly used payment methods, followed by AMEX. The interchange cost for Visa and Mastercard credit cards in Canada ranges from about 1.4% to 2% on average, with higher costs for highly exclusive or premium cards. Compared to Visa and Mastercard, American Express tends to have slightly higher costs on average.


Interac, a popular payment option in Canada for in-person or retail POS transactions, is known for its cost-effectiveness for merchants, ranking second only to cash. However, it's important to note that Interac is currently not supported in the Shoplazza platform. While Interac Online enables online purchases, it is not widely adopted for e-commerce transactions.

Visa and Mastercard Debit

In Canada, the interchange rate for Visa and Mastercard debit cards is 1.15%, which is much more cost-effective to process than credit cards. Although they function similarly to credit cards for merchants, accepting Visa or Mastercard debit cards has no downside and is a much more budget-friendly option.

Card Type Low Interchange Costs Usable Online Supported Internationally
Visa Credit No Yes Yes
Mastercard Credit No Yes Yes
American Express No Yes Yes
Visa Debit Yes Yes Yes
Mastercard Debit Yes Yes Yes
Interac Yes Limited Limited


Canadian Interchange costs

Payment processing incurs a cost that can vary based on the type of card used and the method of submission, whether it be online or in-person. This underlying cost structure is called interchange. Understanding interchange can help you select the best payment processor and negotiate better rates. By recognizing the interchange costs, you can identify and avoid unfavorable quotes while focusing on favorable ones to get the best rates possible.

Interchange Rates in Canada Official Links

What you need to know about interchange:

  • There are several other tiers of interchange such as recurring billing, interchange for charities, etc.
  • Interchange fees are set nationally across Canada. All Canadian payment processors incur the same interchange costs. (It is a fair and even playing field - your choice of processor does not impact interchange costs in Canada).
  • Although the interchange fees incurred by processors in Canada are the same, the rates charged to merchants are certainly not. Processors can charge you whatever they want. You want to pay a rate that is as minimally above interchange as is possible. This is where doing your research and getting a good quote from a reputable processor is important to controlling your costs.
  • A large portion of the fees that you pay to your processor go to Visa and Mastercard to cover the interchange fees for your transactions.
  • The way the card is used will also impact the interchange cost. For example, a retail in-person transaction at a grocery store incurs a lower interchange fee than an e-commerce transaction. This is called the "presentation type" and it will impact the interchange cost for your payments.
  • Each time a payment is processed an "interchange" fee is incurred.
  • Type of card used impacts interchange costs. A basic credit card has a less expensive interchange cost. (For example, a college students credit card). A fancy rewards credit card has a higher interchange costs.
  • Interchange fees are not charged to merchants. They are charged by Visa and Mastercard to payment processors.

Why interchange matters?

Having a good understanding of interchange is essential for evaluating payment processing quotes accurately, so you don't end up paying more than you should. It's not the interchange fees themselves that matter since they are unavoidable—what matters is how much your processor will mark up your processing fees above interchange. All processors need to charge a rate above interchange to make a profit, but the key is to control that markup. However, not all processors even mention interchange, and some charge fixed or fluctuating rates that aren't linked to interchange, making it difficult to know the exact amount you'll be paying. Understanding interchange costs allows you to distinguish between great, mediocre, or potentially misleading quotes and negotiate more effectively.


Process Credit Cards in USD and Receive Your Deposit in USD

Many business owners are not aware of how simple it is to accept credit card payments in US dollars, which is nearly identical to processing payments in Canadian dollars. In addition, businesses that process payments in USD with services such as Paypal often have their deposits converted into Canadian dollars, even though they would prefer to avoid this conversion.

Canadian (and European) businesses can avoid significant expenses related to currency conversion by processing payments in US dollars. This can be easily achieved by receiving deposits in US dollars into a USD bank account in Canada.

Why is this important?

Avoiding unnecessary currency conversions is crucial because converting from one currency to another can be expensive. For instance, while a typical merchant pays a discount rate of around 2% to 3% for processing a credit card transaction, converting money at a bank from USD to Canadian dollars incurs fees of approximately 3% to 5% above the mid-market exchange rate.

Currency conversion fees are more expensive than the cost of processing credit cards, which is already a significant expense for business owners. As a result, having a strategic approach when accepting payments from international customers is essential, particularly if your business processes a high volume of transactions in foreign currencies.

What do I need to process and receive payments in USD?

This is what you need:

  • A USD business bank account at a Canadian bank. Fortunately, many Canadian banks offer USD bank accounts, and you don't need to have a bank account in the USA. Establishing a USD bank account in Canada is easy and affordable. The majority of Canadian banks provide this service, including TD, RBC, BMO, Scotiabank, and others.
  • You will also need a merchant account provider that supports USD processing and can settle your US transactions into your USD bank account in Canada.

When processing a payment, you have the flexibility to charge a credit card in any currency that you prefer (provided your payment processor supports multi-currency processing). This selected currency is known as the processing currency and will be charged to your customer's card. Once your payment processor sends you the payment, it becomes the settlement currency, which is sometimes referred to as the funding currency.

To minimize currency exchange fees, it's preferable for the settlement currency to match the processing currency.

If your business has costs in USD

If your business incurs expenses in USD, it can lead to double penalties. First, during the conversion of your USD funds into Canadian currency(CAD) and their deposit into your bank account. And second, when you convert the received CAD funds back to USD for supplier payments.

It's vital to consider the expenses your business is incurring in such cases. When combined, the expenses can be over 5%, and in some cases, they could approach 10%. To avoid these extra costs, it's best to receive funds in USD. In summary, if your business has USD expenses and is converting Canadian dollars back to USD, it's an unnecessary expense that can cost your business a considerable amount.


This guide is intended for Canadian merchants who plan to sell their products or services domestically as well as internationally. The information provided in this article is intended for general knowledge purposes only. While we strive to ensure accuracy, payment processing details and policies may vary among different providers. For precise and up-to-date information, we strongly recommend reaching out to each respective payment provider directly. They will be able to provide you with the most accurate and specific details regarding their services and requirements.

Can't process USD and receive USD funds into my USD account

Some credit card processors, like PayPal, allow you to process payments in USD but require you to receive your deposits in Canadian currency. This is because they make a considerable profit from currency conversion fees. However, there is no requirement for you to convert your funds, and you can avoid it by selecting a payment processor that offers direct funding in US currency.

What are the requirements and how do I set this up?

Setting up USD funding for your business is a straightforward process that's identical to setting up credit card processing in Canadian dollars. The only difference is that you'll need to open a separate merchant account specifically for your US dollar transactions.

Essentially, you will have two separate accounts to manage and process transactions with. When sending a transaction to be processed, you simply select which merchant account to use, either your Canadian dollar or USD account.

Let's say you own a business that sells products or services to customers in both Canada and the United States. You want to offer your US customers the option to pay in USD and have the funds deposited directly into your USD bank account.

To do this, you would need to set up a separate merchant account specifically for processing USD transactions. This can usually be done easily with your payment processor or merchant services provider. Once you have the separate account set up, you can start accepting payments in USD and have the funds deposited directly into your USD bank account without any currency conversion fees or hassles.


What about other currencies such as GBP or EUR?

If you want to accept payments in GBP or EUR, there are certain requirements that need to be fulfilled, as it adds complexity when processing and settling foreign currencies from Canada. Even if there were no complexity, holding funds in multiple currencies presents a cost and accounting challenge. As a result, consulting with your provider in the area of multi-currency processing can help reduce costs and manage compliance hurdles related to establishing merchant accounts in foreign currencies.


What is a chargeback?

It's important to understand the impact that chargebacks can have on your business. A chargeback occurs when a customer disputes a charge made to their account, either because they didn't receive the product or service they paid for, product not as described/defective, or because they believe the charge was fraudulent. If the claim is found to be valid, the payment processor will refund the customer's money and charge it back to your account. This can be costly, as payment processors typically charge a chargeback fee ranging from $15 to $25 CAD in Canada.

To prevent chargebacks, it's important to have clear and transparent policies regarding refunds and returns. Make sure your customers know what they can expect if they are not satisfied with their purchase, and provide them with a way to contact you if they have any concerns or questions. You should also take steps to ensure the security of your customers' payment information, such as using a secure payment gateway and encrypting sensitive data.

If a chargeback does occur, it's important to respond promptly and professionally to the customer's concerns. Work with your payment processor to investigate the claim and provide any necessary documentation or evidence to support your case. Keep in mind that chargebacks can be damaging to your reputation, and your payment provider may terminate your agreement with them if you are deemed high risk, so it's important to handle them with care and take steps to prevent them from occurring in the first place.

Here are the steps on how chargebacks work:

  • Customer initiates a dispute: The chargeback process begins when a customer disputes a charge on their account. This can happen for a variety of reasons, such as if the customer did not receive the product or service they paid for, if the charge was made fraudulently, or if there was a billing error.
  • Payment processor notifies the merchant: Once the customer initiates a dispute, the payment processor will notify you, the merchant, of the dispute. The payment processor will provide you with details of the dispute and any supporting documentation from the customer.
  • Merchant reviews the dispute: As a merchant, it's important to review the dispute carefully and provide any additional information or documentation that may be relevant to the case. This may include order information, shipping information, or any communication you had with the customer.
  • Payment processor investigates the dispute: The payment processor will investigate the dispute to determine its validity. This may involve reviewing transaction details, reaching out to the customer or the merchant for additional information, and analyzing any supporting documentation.
  • Payment processor makes a decision: Based on the results of the investigation, the payment processor will make a decision about whether or not to issue a chargeback. If the claim is found to be valid, the payment processor will refund the customer's money and charge it back to the merchant's account. The merchant will also be charged a chargeback fee, which typically ranges from $15 to $25 CAD per occurrence.
  • Merchant can dispute the chargeback: If the merchant believes that the chargeback was issued unfairly or mistakenly, they can dispute the chargeback with the payment processor. This may involve providing additional evidence or documentation to support their case.
  • Final decision is made: Once the payment processor has made a final decision about the chargeback, the outcome is final and cannot be appealed. The merchant may need to adjust their accounting and inventory to account for the lost revenue or returned merchandise.


Can I use multiple payment processors at the same time

As a merchant using the Shoplazza platform, you have the advantage of expanding your payment options beyond just traditional credit cards. Shoplazza supports multiple payment gateways, allowing you to integrate alternative payment methods into your online store. By offering popular options like Apple Pay, Google Pay, and PayPal, you can cater to a broader range of customers who prefer these alternative methods. This flexibility enhances the convenience and accessibility of your store, potentially leading to increased conversions and customer satisfaction. With Shoplazza's support for alternative payment gateways, you can confidently provide a seamless and user-friendly checkout experience for your customers, ultimately boosting your business's success in the competitive e-commerce landscape.


In conclusion

There are a variety of processing options available in Canada and selecting the best one for your business requires careful consideration of factors such as the types of payments you accept (in-person or online), your transaction volumes, and finding a processor that specializes in your type of business. It's important to ensure that your processing costs are tied to interchange and that you are not locked into a lengthy agreement. By following these steps, you can find a solution that works well for your business.



This guide is intended for Canadian merchants who plan to sell their products or services domestically as well as internationally. The information provided in this article is intended for general knowledge purposes only. While we strive to ensure accuracy, payment processing details and policies may vary among different providers. For precise and up-to-date information, we strongly recommend reaching out to each respective payment provider directly. They will be able to provide you with the most accurate and specific details regarding their services and requirements.

Was this article helpful?
0 out of 0 found this helpful



Please sign in to leave a comment.