Debit Payment Processing with Interac Helps Small Businesses Manage Transactions

Canadians rely on Interac® brand to make more than 13 million transactions a day. Using one’s debit card has emerged as the most prevalent payment method amongst small businesses (Interac Payment). It is no surprise that Canadians love using Debit payment processing as their go-to payment choice because people often prefer using their own money instead of borrowing money (via credit card) to conduct day-to-day small purchases. Other reasons why Debit card has risen in popularity are largely due to the cards’ practicality, safety and convenience features.

 There are essentially four steps when a transaction occurs with a Debit card:

There are several advantages of using a Debit card payment method:

Consumers enjoy the convenience of paying with a Debit card, which reduces their need to visit an ATM or carry large amounts of cash.

Take a coffee shop for example; although a cup of coffee is typically under $5 dollars, consumers will not necessarily need cash to pay for their drink as they can rely on their Debit card to make the purchase. Most people no longer carry cash and most coffee shops will have a POS terminal that allow for this to happen. Furthermore, it is economical for merchants to accept Debit card because they will only have to pay for a small flat processing fee.

A private Personal Identification Number (PIN) is selected by each card holder to access their individual accounts. This “Two Factor Authentication” (Card/PIN combination) increases the security and confidentiality of the system, helps eliminate the worry of theft, and makes it impossible to access funds without the corresponding PIN.

Consumers in Canada are protected under The Canadian Code of Practice for Consumer Debit Card Services (or the “Debit Card Code”) which aims to cover all providers of debit card services. Adherence to the Code is overseen by the Financial Consumer Agency of Canada (FCAC), which investigates consumer complaints.

Only a limited amount of information is revealed with each Debit payment processing transaction. The only personal information found on a typical receipt will be the client’s card number, usually consisting of only the last four digits of the card, and the account selected (chequing/savings). In comparison, when a cheque is made out to a merchant, the customer’s name, address, and phone number are in the top left hand corner of a cheque and the MICR encoded account number is printed on the bottom of the cheque.

According to the Interac website, using Interac Debit helps consumers take control over how much they are spending and control their finances. Using one’s Debit card is like using cash, but more secure, as the money is exchanged electronically between the bank and the merchant through the Interac network. Another convenient feature of Debit card is the less cumbersome monthly statements that customers have to review. Instead of having to check line-by-line on a Credit card statement, consumers can rest assured that everything they voluntarily paid for is on the bill and they won’t be charged for items they didn’t pay for.

Interac Debit is a flat-fee, low cost payment acceptance option for Canadian merchants. Credit cards may sometimes result in higher costs as fees are percentage based. Similar to consumers who enjoy numerous benefits of using a Debit card, there are advantages for merchants as well:

Interac Debit is the everyday payment solution that is in nearly every Canadian’s wallet. When a small business owner offers Interac Debit, they will benefit from the following:

As a merchant, you are guaranteed funds with every approved transaction. They will receive a deposit directly to their bank account the next business day for all Interac Debit transactions.

As of April 18, 2016 a small flat-fee interchange pricing structure for Interac Flash (Tap only) transactions was introduced. The flat fee ranging from 2 cents to 3.5 cents only applies to Interac Flash transactions, and the interchange rate for other Interac Debit transactions will remain at zero. Interac has introduced this pricing in order to remain competitive with credit card options in the eyes of financial institutions that are incentivized by revenue when issuing different types of cards. Although, there will be a slight cost increase for merchants to deploy Debit payment processing in their stores, it remains an affordable and convenient option.

Those a part of merchant services Canada who are looking for Debit Payment Processing Terminals should look no further!  MONEXgroup has more than a decade of experience in providing industry leading POS terminals and merchant services for both In-Store and Online applications.

Our competitive rates result in monthly savings and our reliable technical support assures our merchants a good-night’s sleep. MONEXgroup clients don’t need to worry about uncertain cash flow as they receive consistent Next Day Deposits.

MONEXgroup offers businesses in Canada with the latest debit payment processing solutions for their everyday business needs. Security, reliability and innovation in the latest POS technologies are readily available to every merchant. With latest advancements in E-Commerce, Countertop, Mobile, Wireless and Integrated Systems, the payments market has been constantly changing and that’s due to the evolution in the methods of payment, improved merchant services and sophistication of the built-in secured technologies. MONEXgroup takes on a leadership position in staying one step ahead, and we look forward to demonstrating our value-add.