Understanding Why Fees Differ
Payment processing fees in Canada consist of three layers:
- Interchange: Paid to the card-issuing bank. Set by Visa/Mastercard. Non-negotiable. Typical range: 0.5%–2.5%.
- Assessment fee: Paid to Visa/Mastercard network. Tiny (~0.08–0.13%). Non-negotiable.
- Processor markup: What your payment processor keeps. This is where costs vary dramatically between providers.
Flat-rate processors (Square, Stripe) bundle all three costs into one rate (e.g., 2.6%). This is simple but often means you're subsidizing someone else's expensive rewards card transactions.
Interchange-plus processors (Helcim) charge you the actual interchange + a small fixed markup. You pay exactly what the card costs — no more.
Cheapest Processor by Monthly Volume
Assumptions: 70% in-person, 30% online, average ticket $65, 200 transactions/month, average interchange 1.60%
| Volume | Helcim (IC+) | Square (Flat) | Stripe (Flat) | Moneris | Winner |
|---|---|---|---|---|---|
| $1,000/mo | $24 | $26 | $30 | $50 | Helcim (barely) |
| $3,000/mo | $63 | $78 | $87 | $98 | Helcim |
| $10,000/mo | $200 | $260 | $290 | $270 | Helcim (saves $60–$90/mo) |
| $25,000/mo | $475 | $650 | $725 | $637 | Helcim (saves $175–$250/mo) |
| $50,000/mo | $895 | $1,300 | $1,450 | $1,248 | Helcim (saves $400–$555/mo) |
| $100,000/mo | $1,680 | $2,600 | $2,900 | $2,445 | Helcim (saves $900–$1,220/mo) |
When Flat-Rate IS Cheaper
Flat-rate pricing (Square, Stripe) can actually beat Helcim's interchange-plus in specific scenarios:
- High-interchange card mix: If most customers use premium rewards or corporate cards (interchange 2.0–2.5%), the flat 2.6% rate may cost less than interchange + markup.
- Very small ticket sizes: The per-transaction fee on Helcim ($0.06–$0.25) adds up with many tiny transactions. A business doing 1,000 transactions/month at $2 average would pay Helcim's per-txn fees disproportionately.
- Batch processing differences: Some edge cases in manual keyed transactions may favor flat-rate.
Hidden Costs That Affect Total Cost
The processing rate is just part of your total cost. Factor in:
- Monthly fee: Moneris charges $24.95–$49.95/month. This adds $300–$600/year before processing.
- Terminal rental: Moneris and Clover charge $25–$35/month for terminal rental.
- Chargeback fees: $15–$25 per dispute. If you have 2 chargebacks/month, that's $300–$600/year.
- PCI compliance fee: Some processors charge $9.95–$19.95/month. Helcim and Stripe include it free.
How to Lower Your Processing Costs
1. Switch to Interchange-Plus Pricing
This is the single biggest lever. Most businesses that switch from flat-rate to Helcim's interchange-plus save $50–$500/month depending on volume.
2. Encourage Interac Debit Payments
Interac debit fees are tiny — often $0.08–$0.15 per transaction vs. 1.5–2.0% for credit cards. On a $100 purchase, that's $0.12 vs. $1.75.
If you can encourage customers to pay with debit, your effective rate drops significantly.
3. Eliminate Monthly Fees
Switch from Moneris ($25–$50/month) to Helcim ($0/month) and you save $300–$600/year before touching processing rates.
4. Reduce Chargebacks
Implement clear refund policies, use address verification, and require CVV for online orders. Each avoided chargeback saves $15–$25 plus the transaction amount.
5. Negotiate at Volume
Processors including Stripe and Moneris offer negotiated rates once you hit $50,000–$80,000/month in processing. It's worth the 20-minute phone call.
Cheapest Option Summary
- Under $2,000/month: Square or Stripe (simplicity wins, cost difference minimal)
- $2,000–$10,000/month: Helcim (saving $30–$90/month vs. flat-rate)
- $10,000–$100,000/month: Helcim strongly recommended (saving $90–$1,200/month)
- Over $100,000/month: Helcim or negotiate custom interchange+ with Moneris/Chase