Choosing the right payment processing solution is one of the most critical decisions Canadian businesses face in 2026. With the emergence of Real-Time Rail (RTR) payments, ISO 20022 compliance requirements, and AI-driven commerce solutions, the payment landscape has evolved dramatically from traditional merchant accounts.
Whether you're a Toronto-based startup accepting your first online payment, a Vancouver restaurant comparing Square versus Moneris, or a non-profit organization seeking tax-compliant payment gateways, this comprehensive guide covers everything you need to know about payment processing in Canada.
- How to accept international payments with minimal fees
- Detailed comparisons of Canadian payment processors
- Cost analysis of accepting US dollars in Canada
- Compliance requirements for different business types
- Emerging payment technologies and their benefits
Understanding The Canadian Payment Processing Landscape
The Major Players In 2026
The Canadian payment processing market consists of three distinct tiers:
Tier 1: Traditional Bank Solutions
- Moneris (owned by RBC and BMO)
- TD Merchant Services
- Scotiabank Payment Solutions
- CIBC Merchant Services
Tier 2: Modern Payment Processors
- Square Canada
- Stripe Canada
- Helcim
- PayPal Canada
Tier 3: Emerging Technology Providers
- Shopify Payments (for e-commerce)
- Wix Payments
- Embedded payment solutions for SaaS platforms
How To Accept International Payments As A Canadian Business
The Challenge Of Cross-Border Payments
Canadian businesses lose an estimated $2.3 billion annually to unnecessary foreign exchange fees and unfavorable payment processing terms. Understanding your options is crucial for profitability.
Method 1: Multi-Currency Merchant Accounts
Businesses with consistent international sales ($10,000+ monthly)
How It Works: Your payment processor provides you with multiple currency settlement options, allowing you to receive payments in USD, EUR, GBP, and other currencies.
Top Providers:
| Provider | Supported Currencies | Monthly Fee | FX Markup | Settlement Time |
|---|---|---|---|---|
| Stripe Canada | 135+ currencies | $0 | 1.5% above mid-market | 2-7 business days |
| PayPal Business | 25+ currencies | $0-$30 | 2.5-4% above mid-market | 1-3 business days |
| Helcim | 130+ currencies | $0 | 1.75% above mid-market | 2-5 business days |
| Moneris | 22 currencies | $25-$50 | 2-3% above mid-market | 3-7 business days |
Implementation Steps:
- Register for a business account with your chosen provider
- Complete enhanced identity verification (required under FINTRAC regulations)
- Configure currency settings in your dashboard
- Add payment buttons or API integration to your website
- Enable automatic currency conversion at checkout
Real-World Example: A Vancouver-based software company using Stripe's multi-currency feature saved $47,000 annually compared to their previous bank solution by reducing FX markups from 3.5% to 1.5% on $2.5M in international transactions.
Method 2: Virtual Terminals For Remote Businesses
Service businesses, consultants, remote contractors
Virtual terminals allow you to process payments from anywhere with an internet connection —ideal for businesses without physical locations or those serving international clients.
Best Virtual Terminal Solutions For Canadian Businesses:
| Solution | Monthly Cost | Per-Transaction Fee | International Card Support | Mobile App | Key Feature |
|---|---|---|---|---|---|
| Square Virtual Terminal | $0 | 2.65% + $0.10 | Yes (190+ countries) | Yes | Free email invoicing |
| Helcim Virtual Terminal | $0 | 1.93% + $0.05 | Yes (160+ countries) | Yes | Interchange-plus pricing |
| Moneris Virtual Gateway | $35 | 2.5% + $0.25 | Yes (150+ countries) | Limited | Bank integration |
| PayPal Virtual Terminal | $30 | 2.99% + $0.30 | Yes (200+ countries) | Yes | PayPal balance payments |
Tax Compliance Note: When accepting international payments, Canadian businesses must collect GST/HST on taxable supplies to Canadian customers, regardless of payment processor. International sales may be zero-rated for tax purposes—consult a Canadian tax professional for your specific situation.
Method 3: Payment Service Provider (PSP) Aggregators
Startups and businesses with revenue under $100,000 annually
PSPs like Stripe and Square allow you to start accepting payments within 24 hours without a traditional merchant account.
Advantages:
- No monthly minimums or statement fees
- Fast approval (sometimes instant)
- Lower barrier to entry for new businesses
- Built-in fraud protection
Disadvantages:
- Higher per-transaction fees than dedicated merchant accounts
- Account holds possible during manual reviews
- Limited negotiation power on rates
Moneris Vs Square For Small Business Canada: The Complete Comparison
This is one of the most searched payment processing questions in Canada for good reason—these represent two fundamentally different approaches to merchant services.
Pricing Structure Breakdown
Moneris Pricing (Traditional Model):
- Monthly statement fee: $25-$50
- Gateway fee: $8-$15/month
- Per-transaction: 1.9-2.7% + $0.05-$0.10
- PCI compliance fee: $79.95/year
- Chargeback fee: $25
- Early termination fee: $250-$500 (3-year contracts common)
Estimated Monthly Cost For 100 Transactions ($5,000 volume):
- Base fees: $40
- Transaction fees: $100 (2% average)
- Total: $140/month ($1,680/year)
Square Canada Pricing (Flat-Rate Model):
- Monthly fee: $0
- Per-transaction: 2.65% + $0.10 (online), 2.65% + $0 (in-person tap/chip)
- Chargeback fee: $15
- No contracts or termination fees
Estimated Monthly Cost For 100 Transactions ($5,000 volume):
- Base fees: $0
- Transaction fees: $142.50
- Total: $142.50/month ($1,710/year)
The Break-Even Analysis
| Monthly Volume | Transactions | Square Total Cost | Moneris Total Cost* | Better Choice |
|---|---|---|---|---|
| $2,500 | 50 | $76.25 | $90 | Square |
| $5,000 | 100 | $142.50 | $140 | Moneris (marginal) |
| $10,000 | 200 | $275 | $240 | Moneris |
| $25,000 | 500 | $687.50 | $540 | Moneris |
| $50,000 | 1,000 | $1,375 | $1,040 | Moneris |
*Moneris rates negotiable based on volume; rates shown are mid-tier estimates
Feature Comparison: Square Vs Moneris
Expert Recommendation
Choose Square if:
- Monthly processing under $15,000
- You're a new business or startup
- You want no monthly fees or contracts
- You need free integrated software (POS, payroll, appointments)
- You value simplicity and speed of setup
Choose Moneris if:
- Monthly processing exceeds $25,000
- You operate in high-risk or specialized industries
- Your business banks with RBC or BMO
- You need dedicated account management
- You can negotiate custom rates based on volume
Emerging Payment Technologies For 2026
Real-Time Rail (RTR) Payments Canada
Canada's new instant payment system (launched fully in 2026) enabling real-time account-to-account transfers 24/7/365.
Benefits For Canadian Businesses:
- Settlement in under 10 seconds (vs. 3-5 days for credit cards)
- Lower transaction costs (estimated 0.5-1% vs. 2-3% for cards)
- Reduced fraud risk (account-verified transactions)
- Better cash flow management
Current Adoption:
- Participating banks: All major Canadian banks
- Payment processors integrating RTR: Stripe Canada, Helcim (beta), Moneris (Q2 2026)
- Estimated cost: $0.25-0.50 per transaction + 0.5% (expected)
Use Cases:
- Payroll (instant wage access)
- Invoice payments (B2B transactions)
- Gig economy payments
- Subscription services
Shopify Payments Vs PayPal For Canadian E-Commerce
If you're running an online store in Canada, this decision significantly impacts your bottom line and customer experience.
The Integration Advantage
Shopify Payments:
- Native integration (no third-party setup)
- No transaction fees (2% fee removed when using Shopify Payments)
- Unified dashboard for products and payments
- Automatic tax calculation included
- Faster checkout (Shop Pay integration)
PayPal:
- Universal recognition (85% of Canadian online shoppers have PayPal)
- Guest checkout option (no PayPal account required)
- Works with any e-commerce platform
- International buyer trust
- Dispute resolution system
Pricing Breakdown For Canadian Merchants
Shopify Payments (on Shopify platform):
| Shopify Plan | Monthly Cost | Online Rate | In-Person Rate | Transaction Fee |
|---|---|---|---|---|
| Basic | $39 CAD | 2.9% + $0.30 | 2.7% | 0% |
| Shopify | $105 CAD | 2.7% + $0.30 | 2.5% | 0% |
| Advanced | $399 CAD | 2.4% + $0.30 | 2.4% | 0% |
| Plus | $2,600 CAD | 2.15% + $0.30 | 2.4% | 0% |
PayPal (on any platform):
- Standard rate: 2.9% + $0.30 CAD
- Micropayments: 5% + $0.10 CAD (for transactions under $10)
- Shopify transaction fee: 0.5-2% (if not using Shopify Payments)
Total Cost Analysis
Scenario: $50,000 monthly sales on Shopify Basic plan
Option 1: Shopify Payments
- Plan: $39
- Processing: $1,465 (2.93% average)
- Transaction fees: $0
- Total: $1,504/month
Option 2: PayPal + Shopify
- Plan: $39
- Processing: $1,465 (2.93%)
- Transaction fees: $1,000 (2%)
- Total: $2,504/month
- Extra cost: $1,000/month ($12,000/year)
When PayPal Makes Sense
Despite higher costs, PayPal remains valuable for:
- Multi-platform sellers: If you sell on Shopify, Amazon, and eBay, PayPal provides unified payment acceptance
- International trust: Some international markets strongly prefer PayPal (especially emerging markets)
- Buyer protection marketing: PayPal's buyer protection can reduce cart abandonment for expensive items
- Alternative payment method: Offer PayPal alongside Shopify Payments to maximize conversion
Conversion Rate Impact
Industry Data (2026 Canadian E-commerce):
- Stores with single payment option: 2.3% average conversion
- Stores with 2-3 payment options: 3.1% average conversion
- Stores with 4+ payment options: 3.4% average conversion
Recommendation: Use Shopify Payments as primary (saves transaction fees) + add PayPal as secondary option (increases conversion by 15-25% for many stores)
Conclusion: Key Takeaways For Canadian Businesses
For New Businesses: Start with Square or Stripe for zero monthly fees and fast setup. Switch to Helcim or Moneris once you exceed $15,000-20,000 monthly volume for better rates.
For International Sales: Use Stripe or Helcim with multi-currency support, maintain a USD bank account (TD or RBC), and use Wise Business for currency conversion.
For Non-Profits: Zeffy offers the most cost-effective solution for small organizations. CanadaHelps provides best-in-class compliance features for larger charities.
For High-Volume Businesses: Negotiate custom rates with Moneris or Helcim. At $50,000+ monthly, you should be paying under 2% all-in.
For E-commerce: Use Shopify Payments if on Shopify platform to avoid 2% transaction fees. Add PayPal as secondary checkout option to boost conversion rates.
For Future-Proofing: Prioritize processors offering Real-Time Rail integration and ISO 20022 compliance to stay ahead of payment technology evolution.
Additional Resources
Canadian Payment Association
CRA Charities Directorate
FINTRAC Compliance
Payments Canada RTR Info
