Question 1

Can you give an example of a card-not-present transaction?

Accepted Answer

A customer calls your shop and reads out their card number, which you type into a virtual terminal. Other common examples are an online store checkout, a customer paying an emailed invoice by card, a gym billing a stored card each month and a hotel charging a card on file for a no-show. In each case the card is never physically at your terminal.

Question 2

Is Apple Pay a card-present or card-not-present transaction?

Accepted Answer

It depends on where it is used. When a customer holds a phone with Apple Pay or Google Pay near your terminal, it is processed as an in-person, card-present style transaction. When the same wallet is used to check out on a website or in an app, it is treated as card-not-present. The wallet adds a secure token in both cases, which is one reason in-person wallet payments are low risk.

Question 3

What is a virtual terminal?

Accepted Answer

A virtual terminal is a secure web page, provided by your processor or gateway, where you type in a customer's card details to charge them without any hardware. It is used for phone orders, mail orders and taking deposits. Most also let you save cards with permission, send receipts and issue refunds. Because the card is keyed rather than tapped, these sales usually cost a little more.

Question 4

What is a payment gateway versus a payment processor?

Accepted Answer

A gateway is the technology that captures card details on a website, app or virtual terminal and passes them securely onward. The processor then moves the transaction through the card networks and the acquiring bank so the money settles to you. Some companies sell both as one product; others charge for the gateway separately. Knowing which is which helps you spot a gateway fee on top of processing.

Question 5

What is Tap to Pay on iPhone or Android?

Accepted Answer

It is a feature that lets a business accept contactless cards and phone wallets directly on a compatible smartphone, with no separate card reader. You download your provider's app, sign in and the customer taps their card or phone on the back of your device. It suits mobile businesses and low-volume sellers. Fees and device support depend on the provider, so check compatibility before relying on it.

Question 6

How much does a payment gateway cost?

Accepted Answer

Gateways are priced in several ways: some are bundled into the processing rate, some charge a monthly fee, some a small fee per transaction, and some combine these. Setup fees also exist with certain providers. When comparing, add the gateway cost to the processing cost for your actual monthly transaction count, because a cheap rate with a pricey gateway can cost more overall.

Question 7

How can my business accept ACH payments?

Accepted Answer

You can accept ACH through a processor or payment platform that offers bank payments, through your business bank, or via invoicing software with a pay-by-bank option. The customer authorizes a debit from their account, or pushes a payment to yours. ACH is usually cheaper than cards for larger invoices but takes longer to settle and can be reversed in some cases. In Canada the equivalent is EFT or pre-authorized debit.

Question 8

Is an ACH payment safe?

Accepted Answer

ACH is a well-established, regulated bank-to-bank system and is considered safe for routine payments. The main risks are fraud from stolen bank details and returns, since some ACH debits can be reversed for a period after settlement. Protect yourself by getting written authorization, verifying account details for new customers and watching for returned payments before shipping high-value goods.

Question 9

ACH, e-Transfer or card: which should a business accept?

Accepted Answer

Most businesses benefit from offering more than one. Cards are fastest at checkout and familiar to customers but cost more. ACH in the US and EFT or Interac e-Transfer in Canada usually cost less for larger amounts and repeat billing, but settle more slowly and suit invoices better than counter sales. Look at your average sale and how customers prefer to pay, then steer large invoices toward bank payments.

Question 10

What is next-day or same-day funding?

Accepted Answer

Next-day funding means card sales batched by a set cut-off time reach your bank account the following business day; same-day funding lands the same day. Availability depends on the provider, your bank and sometimes an extra fee. Weekends and holidays can still delay deposits. If cash flow matters, ask for the cut-off time and funding schedule in writing.

Question 11

What is the Interac debit network in Canada?

Accepted Answer

Interac is Canada's domestic debit network. When a customer pays with their bank card in store, the payment usually runs on Interac, and Interac Flash is its tap version. Interac debit generally costs merchants less than credit cards and is usually priced per transaction rather than as a percentage. Interac e-Transfer is a separate service for sending money between bank accounts.

Question 12

Can a business accept Interac e-Transfer payments?

Accepted Answer

Yes. Customers can send an Interac e-Transfer to your business email or phone, and many businesses use it for invoices and deposits. Your bank decides the limits and fees, and business e-Transfer features differ by bank. It is useful for larger payments but less suited to fast counter sales. Automatic reconciliation can be harder than with card or EFT payments, so plan how you will match payments to invoices.

Question 13

What is the best way for a small business to accept payments?

Accepted Answer

Offer what your customers already prefer, at the lowest total cost. For most counters that means a terminal or POS that takes tap, chip and phone wallets. Add a virtual terminal or invoice links for phone and remote orders, and ACH or EFT for larger invoices. Online sellers need a gateway tied to their store. Fewer providers and clear pricing make it easier to manage.

Question 14

What is text-to-pay?

Accepted Answer

Text-to-pay sends the customer a text message with a secure payment link. They tap it, enter or confirm their card or wallet and pay on their phone. It is useful for service businesses, deposits, curbside pickup and overdue invoices. The payment is processed as card-not-present, so pricing is similar to online payments. Make sure your provider's links come from a recognisable sender to avoid looking like a scam.

Question 15

Can I send invoices that customers pay by card online?

Accepted Answer

Yes. Many processors, POS systems and accounting tools let you email or text an invoice with a pay-now link for card or bank payment. The payment lands in your merchant account and can be matched back to the invoice. Compare fees for card versus bank payments on invoices, since steering large invoices to ACH or EFT can save money. We also have a free invoice generator.

Question 16

What should be on a business invoice?

Accepted Answer

At minimum: your business name and contact details, the customer's name, a unique invoice number, the issue date, a description of the goods or services, quantities and prices, applicable sales taxes with your tax registration number where required, the total due, payment terms and how to pay. Tax requirements differ by state and province. This is general information, not legal or tax advice.

Question 17

What is recurring billing?

Accepted Answer

Recurring billing automatically charges a customer's saved card or bank account on a schedule, such as monthly memberships or subscriptions, after they give permission. It reduces late payments and admin, but needs clear terms, cancellation steps and a way to update expired cards. Recurring card payments are card-not-present, so declines and disputes are worth monitoring closely.

Question 18

Recurring card payments or pre-authorized debit: which is better?

Accepted Answer

Card billing is easy to set up and customers recognise it, but cards expire and fees are higher. Bank debits, ACH in the US and pre-authorized debit in Canada, usually cost less and do not expire, but take longer to set up, settle more slowly and have their own return rules. Many membership businesses offer both and encourage bank debit for higher-value plans.

Question 19

How do businesses pay each other?

Accepted Answer

Businesses commonly pay each other by ACH or EFT bank transfer, wire, cheque, business credit card and, in Canada, Interac e-Transfer for smaller amounts. Cards are fast for buyers but cost the seller more, while bank transfers are cheaper but slower. Many B2B sellers offer card for convenience and steer large invoices toward bank payment.

Question 20

What is the safest way to pay an invoice?

Accepted Answer

Use a method that confirms you are paying the real supplier. Card payments through a secure link offer chargeback rights; bank transfers are efficient but harder to reverse. The biggest risk is fake invoices or changed bank details, so always confirm new or changed payment details by calling a number you already know, not one in the email.

Question 21

How do I accept card payments for a new small business?

Accepted Answer

Choose how customers will pay: in person, online, by phone or invoice. Then apply for a merchant account or start on an aggregator, set up a terminal, POS or gateway, and connect it to your business bank account. Expect to provide ID, business details and banking information. New businesses with no processing history can usually be approved, sometimes with limits at first.

Question 22

What is a payment authorization and a hold on a card?

Accepted Answer

An authorization asks the card's bank to approve a charge and reserves that amount on the cardholder's account. It is not money in your account yet. The sale completes when it is captured and settled. Hotels, rentals and restaurants with tips often authorize first and capture later. Unused authorizations should be released so customers are not left with a hold.

Question 23

What is a contactless payment limit?

Accepted Answer

Contactless transactions can have a maximum amount set by networks, banks or the merchant's terminal setup. Above it, the customer is asked to insert the card and enter a PIN. Phone and watch wallets usually have higher or no such limits because the customer already approved the payment with face, fingerprint or passcode. Limits vary by country and card.

Question 24

What are the disadvantages of contactless payments for a business?

Accepted Answer

The trade-offs are small: lower-value limits on physical cards can force a PIN step, very old terminals may not support it, and customers sometimes tap the wrong card. Fraud risk is low because each tap uses a one-time code. For most businesses the speed at the counter outweighs the downsides, and tapped payments usually cost the same as chip.

Question 25

How do I take a deposit by card for a booking?

Accepted Answer

Most providers let you send a payment link, charge a deposit through a virtual terminal or collect it in a booking app linked to your processor. State the deposit amount, refund policy and cancellation terms clearly before the customer pays, and keep a record of their agreement. That evidence matters if the deposit is ever disputed.

Question 26

Can I charge a card on file without the customer present?

Accepted Answer

Yes, if the customer gave clear permission for that type of charge and you stored the card through your provider's secure card-on-file or tokenization feature. Keep the signed or recorded authorization, state when and why you will charge, and send a receipt each time. Unclear authority over stored cards is a common source of chargebacks.

Question 27

How should contractors and home-service businesses take payments?

Accepted Answer

Most trades need to get paid away from a counter: a phone with tap-to-pay or a small reader on site, invoice links for larger jobs, and ACH or EFT for big balances. Taking deposits before materials are ordered and getting written approval of the quote reduces disputes. Keyed card payments cost more, so tap or chip on site where you can.

Question 28

How do law firms accept card payments for retainers?

Accepted Answer

Law firms often need to keep client funds separate from operating money, so payments for retainers may have to be deposited to a trust account while fees are taken from the operating account. Rules come from your law society or state bar, so check them before choosing a provider. This is general information, not legal advice.

Question 29

Can I create my own payment gateway for free?

Accepted Answer

Not in any practical sense. Writing checkout code is possible, but a real gateway must connect to processors, be certified by them and meet the full PCI DSS standard for handling card data, which brings audits, security testing and ongoing costs. Most businesses use an existing gateway or a hosted payment page instead, which also keeps their own PCI workload small. If you need a custom checkout, build it on a gateway's API rather than replacing the gateway itself.

Question 30

Can you provide a list of payment gateways?

Accepted Answer

Widely used gateways include Authorize.Net, NMI, Stripe, Braintree, PayPal, Square, Adyen and Checkout.com, and in Canada Moneris and Helcim also offer online gateways. Some are pure gateways that work with many processors; others bundle the gateway and the merchant account together. The right choice depends on your website platform, which processors the gateway supports, any recurring billing needs, and its monthly and per-transaction fees. Confirm it plugs into your shopping cart before you sign anything.

Question 31

Does Square charge for ACH payments?

Accepted Answer

Yes, for most uses. Square lists a fee for customers who pay its invoices by bank transfer (ACH), and the current rate and any cap are on Square's own pricing page, so check there rather than relying on an old article. ACH is usually cheaper than cards on large invoices, but funds can take a few business days and payments can be returned. If you collect many large B2B invoices, compare ACH pricing across providers, not just card rates.

Question 32

How long do Visa credit card payments take to process?

Accepted Answer

Approval takes a few seconds at the terminal, but the money takes longer. After you close the batch, the processor settles the sales and deposits them into your bank account, often within one or two business days depending on your provider, your bank and the batch cut-off time. Some providers offer next-day or same-day funding. Weekends, holidays, new-account reviews and unusually large sales can add delays, so ask for your funding schedule in writing.

Question 33

How much does Square charge for Tap to Pay?

Accepted Answer

Square generally charges its standard in-person processing rate for Tap to Pay on iPhone or Android, the same as tapping a card on its reader, and the phone replaces the hardware. Rates differ by country and plan and change over time, so check Square's current pricing page for the exact figure. The app itself costs nothing to download, but every payment still carries a processing fee, and those fees are what drive your monthly cost.

Question 34

What are two alternative ways to pay for online purchases?

Accepted Answer

Besides typing in a card number, two common options are digital wallets, such as Apple Pay, Google Pay or PayPal, and bank payments, such as ACH in the US or Interac e-Transfer and online banking payments in Canada. Buy now, pay later services are a third. For a business, card-based wallets like Apple Pay are usually priced like the card behind them, while bank payments are often cheaper on large tickets but slower to settle. Offer the methods your customers already use.

Question 35

What cards work with Tap to Pay?

Accepted Answer

Any card showing the wave-shaped contactless symbol works, as do phones and watches using Apple Pay, Google Pay or Samsung Pay. Many Visa, Mastercard, American Express and Discover cards are contactless, and in Canada so are most Interac debit cards. On your side, the terminal or phone app needs contactless turned on, and each card brand must be enabled on your merchant account; American Express acceptance, for example, has to be set up. Larger amounts may still ask the customer for a PIN.

Question 36

What is a Moneris deposit?

Accepted Answer

It is the money Moneris sends to your business bank account for card sales you have settled, usually shown on your bank statement with a Moneris description. Deposits are typically grouped by batch or business day, so one deposit can cover many sales. Depending on your agreement, fees may be taken from each deposit or billed once a month, which is why a deposit can be lower than your sales total. Match deposits to the batch reports in your Moneris merchant portal.

Question 37

What is the best invoice system for a small business?

Accepted Answer

The best invoice system is one your customers can pay straight from, by card or bank transfer, and that matches each payment to its invoice automatically. Look for a payment link on every invoice, automatic reminders, recurring invoices for regular clients, and a sync with your accounting software so payments are not typed in twice. Check what you pay per invoice payment, not just the monthly price. If you send only a few invoices, a free invoice template plus a payment link can be enough to start.

Ways to get paid: 37 questions