The Canadian Payment Association (CPA) and Bank of Canada work in tandem to implement a secure payments system for Canadian consumers and for businesses of all sizes. The robust infrastructure provides a stable platform for the operation of a secure payments system that balances the Canadian public policy objectives of safety, efficiency and end-user simplicity (Modernizing Canada’s Payment System). There are three key areas of focus for the governing bodies to consider as the industry moves to modernize Canada’s national secure payments system continuously:
A core payment system should provide rich functionality, allowing for value-added services that can evolve with changing technologies.
In order for new market entrants to maximize the efficiency they offer Canadians, their access to the payment system must be considered. With access comes new risks and Canada must find the right balance between efficiency and safety while evolving to meet consumer needs.
A global perspective must be respected in order for Canada’s secure payments system to be compatible yet innovative on an international level.
However, before one can appreciate the infrastructure put together by the CPA and Bank of Canada, one should first understand what it means to have a world-class secure payments system established in Canada.
Usage of the Secure Payments System in Canada
Canadian consumers basically employ three major methods of paying for transactions: cash, credit card and debit card. More recently, electronic and mobile payments are starting to gain ground in the market. The expanded range of payment options offers Canadians versatility in choosing how they want to pay and here are some statistics that reflect this trend:
99% of adult Canadians have an account with a financial institution
94% of Canadians have a debit card to use at retailers or at ABMs to make transactions
92% of Canadians have at least one major credit card
48% of Canadians use online bill payment as their primary tool for paying bills
30% of Canadians think it is likely they will be paying for more purchases with a mobile wallet in the next two to three years
Analysis of Payment Options – Secure Payments System
The Debit Card Secure Payments System
Canadians love using their debit cards to pay because all they need to do is tap, or enter their PIN to make everyday transactions instead of carrying cash.
In 2000, it was accounted that paying with one’s debit card has surpassed paying with cash as Canadians’ preferred method of payment.
Canadians are among the biggest users of debit cards in the world, with only residents of Sweden, the Netherlands, Australia, and the United Kingdom doing more transactions per person. Debit cards are accepted by 504,000 retailers in Canada, and 4.9 billion transactions were done using the Interac® network in 2014 (Debit Card Payments).
Electronic debit payments are becoming more widespread as Canadians use their debit card to make purchases on e-commerce and transfer money to their friends and family through e-mail. Furthermore, debit card users can now tap their card on newer model terminals to pay instantly. Regardless of the type of transaction, debit card users are well protected by their financial institution in the event of being victimized by fraud (Debit Card Payments).
The Credit Card Secure Payments System
Being able to use one’s credit card ubiquitously is incredibly important for Canadian consumers in carrying out their daily purchasing activities. From gifts to necessities to travel, Canadians use their credit cards and receive numerous benefits from the secure payments system and its operations. When it comes to credit cards, consumers in Canada have a lot of options to choose from including banking institutions, credit unions, and retailers – all of which offer a variety of credit cards, with a wide range of features that can fit every profile and pocketbook.
Canada has a very sophisticated credit card market with a lot of choice and competition for consumers. The secure payments system is advantageous for both individuals and retailers, and is a critical element in Canada’s efficient payments system.
Benefits of credit cards to Canadian consumers
Interest-free credit from time of purchase to the end of the billing period
Instant certainty of payment for merchants means instant receipt of goods and services for consumers
Other rewards and benefits, such as air travel points, cash back, extended warranty programs and affinity programs
Ability to make secure purchases over the Internet
Fraud protection with zero liability to the consumer
Convenience and safety associated with not having to carry large amounts of cash
24/7 access to customer service
Benefits to merchants
Implementing a secure and reliable POS terminal speeds up the checkout process; reduces cash handling time and costs, and ultimately increases sales.
Merchants are not required to accept credit cards but by doing so they attract customers to frequent their location because the method of payment is an appealing one. Merchants that do accept credit cards receive many benefits, including:
Fast, guaranteed payment
The ability of accepting credit without worrying about the creditworthiness of customers, insufficient funds or outstanding receivables
Ability to sell to customers throughout Canada and around the world in the currency used by the retailer
Many retailers offer gift cards for customers to purchase as a gifting option, therefore it can be treated as a prepaid credit card for in-store purchase
MONEXgroup’s Branded Secure Payments System
MONEXgroup offers businesses in Canada with the latest secure payments system solutions for their everyday business. Security, reliability and innovation combined with the latest POS technologies are readily available to every merchant. We deploy the following secure solutions and security features:
Countertop & Wireless Terminals: ensure and enhance the privacy and security of financial data associated with every credit card payment. The security measures offered through EMV Chip and Pin Technology authenticates the credit card, supports faster transaction through PIN verification, and reduces the risk of chargeback through signature verification
E-Commerce Solution: ensures online fraud prevention, compatible with PCI security standards and enhances the ecommerce and/or online payment gateway through verifying account security and credit holder’s billing information. Our integrated online solution checks and confirms credit card security value (3-4 digits) and matches it to the credit card issuer’s value on file (Visa®, MasterCard® & American Express®).
Online Reporting: tracks credit card payment performance and overall transactions, where merchants can access their online account dashboard to track their sales performance and evaluate their daily business activities.
When partnering with the number one payment processor in Canada; MONEXgroup will increase your efficiency and quality of service and lower the related costs and receive the latest Merchant Services Canada Interchange Rates. Request a Cost Comparison Analysis today. Call: 1.866.767.7253 and ask about our latest promotion.
Lindsey Lu
MONEXgroup
Marketing Communications Specialist
llu@MONEXgroup.com
T: 1.866.286.7787 – EXT: 240
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