Most business owners in Vancouver look at one number on the monthly merchant statement: the total paid in fees. The lines underneath tell you more. They show which costs are set by the card networks, which are set by your provider, and which ones you can question.
What makes up a card fee
- Interchange is set by the card networks and paid to the bank that issued the customer's card. It changes with the type of card (standard, premium or business) and with how it is used, in person or online.
- Network fees are smaller charges from the card networks, per transaction or on your total volume.
- Provider markup is what your processor adds on top. This is the part that differs between providers, and the part you can negotiate.
Fixed charges come on top of these: monthly account or statement fees, PCI compliance fees, terminal rental, gateway fees for online payments and monthly minimums.
Debit and credit are priced differently
In Canada, Interac debit is usually charged as a fixed amount per transaction, while credit cards are charged as a percentage of the sale. A café with many small debit payments and a store with fewer, larger credit sales can pay very different amounts on the same plan, so compare plans against your own mix of cards and sale sizes.
One rate, or the costs shown separately
Some plans charge one blended rate, or a few rates, for everything. They are easy to read but do not show how much of each rate is the provider's margin. Other plans list the network cost and the provider's markup on separate lines, which makes providers easier to compare line by line.
A five-minute statement check
- Divide the total fees by your total card sales for the month. That is your effective rate.
- Circle every fixed monthly or yearly fee and note what it is for.
- Find the contract end date, the renewal terms and any early termination fee.
- List the terminals you rent or lease. Equipment is often on a separate contract.
Know your notice period
Under the Code of Conduct for the Payment Card Industry in Canada, payment processors must give merchants at least 90 days' notice before raising a fee or adding a new one, and a merchant can cancel without penalty within 90 days of that notice. Keep those notices. They are your chance to compare before a new fee starts.
Get a second look from OmniPay
OmniPay reviews merchant statements, compares pricing and checks contract terms before a business commits to a provider. If you run a business in Vancouver, share how you take payments through our payment review form or call 1 (855) 757-6604. A review is not a quote or a commitment. It shows where your fees go and which questions to ask next.