Cost examples and choosing a best-fit processor
How to compare payment processor quotes in Canada: a best-fit checklist
A method for comparing card processing quotes on the same month of sales, the documents to request under the Code of Conduct, and the non-price terms that decide fit.
To compare processor quotes fairly, ask every processor to price the same month of your actual sales (volume, transactions and the split between Interac debit, credit and online), then convert each quote to a total monthly cost in dollars including every fixed fee. Only after that, compare the terms that decide fit: deposit timing, equipment, contract length and renewal, exit fees, support and how the provider handles card data. Under the revised Code of Conduct, processors must give you a cost per transaction disclosure with the application and a cover page summarising key terms in the agreement, so ask for those documents before you sign.
This guide is part of the estimates and choosing section. There are no provider rankings here; the aim is to find the best fit for your business.
Step 1: prepare a sales profile
| Item | Your figure (example) |
|---|---|
| Monthly card sales | $22,000 |
| Transactions | 700 |
| Interac debit share | 35% of value, 300 transactions |
| Credit in person | 55% of value |
| Online or keyed | 10% of value |
| Average ticket | about $31 |
| Seasonality | Busy December, slow February |
| Equipment needed | 2 countertop terminals, 1 mobile reader |
Give the same profile to every processor. If you have statements, share a recent one with account numbers removed: a quote based on your real card mix is far more reliable than one based on a "typical" business.
Step 2: request the right documents
- Cost per transaction disclosure: the fee box showing interchange or wholesale rates plus per-transaction fees for each processing method that attracts a different rate, with plain-language definitions.
- Disclosure of fees: every other fee.
- Summary of key elements: term, renewal, cancellation, equipment.
- The equipment agreement or lease, if separate.
- A sample statement, to see how fees will be shown.
These come from the Code of Conduct for the Payment Card Industry in Canada; see merchant rights under the Code.
Step 3: convert each quote to dollars
Illustrative quotes on the profile above (sales $22,000; credit $14,300 over 400 transactions; debit $7,700 over 300 transactions; average credit interchange plus network fees assumed at 1.55% in person and 2.00% online):
| Line | Quote A: flat | Quote B: interchange-plus | Quote C: subscription |
|---|---|---|---|
| Terms (illustrative) | 2.6% in person, 2.9% + $0.30 online, debit included in % | Cost + 0.25% + $0.07; debit $0.09 | $79/month + cost + $0.04; debit $0.04 |
| Credit, in person ($12,100) | $314.60 | $187.55 + $30.25 | $187.55 |
| Online ($2,200, 70 transactions) | $63.80 + $21.00 | $44.00 + $5.50 | $44.00 |
| Credit per-transaction fees (400) | included above | $28.00 | $16.00 |
| Debit ($7,700, 300 transactions) | $200.20 | $27.00 | $12.00 |
| Fixed monthly fees | $0 | $25.00 | $79.00 |
| Terminals (rental) | $0 (bought, $900 one-time) | $50.00 | $40.00 |
| Monthly total | $599.60 | $397.30 | $378.55 |
| Effective rate | 2.73% | 1.81% | 1.72% |
Notes on the arithmetic: Quote A online = $2,200 × 2.9% + 70 × $0.30. Quote B credit in person = $12,100 × 1.55% interchange and network fees + $12,100 × 0.25% markup; online = $2,200 × 2.00% + $2,200 × 0.25%. Quote A requires buying terminals for $900; spread over three years that adds $25 a month.
On this profile, B and C are close, and A costs more mainly because of debit priced as a percentage. Change the profile (a mostly online business, or one with half the volume) and the order can change. Test each quote with the card fee calculator and a slow month.
Step 4: compare the terms that decide fit
| Term | Questions |
|---|---|
| Deposits | Next business day? Weekends? Fees deducted daily or monthly? Any reserve or rolling hold? |
| Contract | Length, automatic renewal (six months or less under the Code), non-renewal notice deadline |
| Exit | Early termination fee, Code exit rights, equipment return |
| Equipment | Rent, buy or lease? Locked to the processor? Who repairs it? |
| Support | Hours, phone versus chat, replacement time for a broken terminal |
| Integration | Works with your POS, accounting software, online store |
| Security | Tokenisation, PCI help, fraud tools |
| Regulation | Bank, or registered PSP on the Bank of Canada registry |
| Language | Service and contracts in French where required in Quebec |
Step 5: questions to ask in writing
- Which of my cards will be charged a rate other than the one quoted, and what rate?
- Are interchange and network fees passed through at cost, with no extra margin?
- What are all fixed fees, including PCI programme and non-compliance fees?
- What is the chargeback fee, and is there a fee for retrieval requests?
- Is there a monthly minimum?
- What is the early termination fee and how is it calculated?
- Is any part of the equipment supplied under a separate lease?
- When do introductory rates end, and what applies afterwards?
Mistakes that distort comparisons
- Comparing headline rates rather than dollar totals.
- Using a sample business rather than your own card mix.
- Forgetting debit pricing.
- Ignoring hardware and leases.
- Accepting an introductory rate without seeing the rate that follows.
- Signing before seeing the cover page and disclosures.
More patterns are in the pitfalls and official sources section.
FAQ
How many quotes should I get?
Two or three, priced on the same profile, are usually enough to see whether your current terms are competitive.
Should I use a broker or sales agent?
Agents and resellers can help, but are often paid by the processor. Ask how they are paid and get every term from the processor's own documents.
Can I negotiate after receiving a quote?
Yes. Markups, fixed fees, hardware prices and termination fees are often negotiable. Interchange and network fees are not.
Sources
- FCAC: Accepting card payments — disclosures and merchant rights under the Code
- Financial Consumer Agency of Canada — full Code text
- Bank of Canada — PSP registry
- Office québécois de la langue française — French-language requirements for contracts in Quebec
