The short answer
Before a business can take cards, the processor checks two things: who you are and what your business does. This check is called underwriting: the processor’s review of the risk of taking on a business.
What each provider asks for differs. This page sets out what Square, Stripe, Helcim and TD Merchant Solutions publish for Canada, side by side.
Why processors check
The sources give two reasons.
The law. Square says: “Federal law and banking industry regulations require that all financial institutions verify and record information that identifies each person who opens an account.” TD’s terms say Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act may require TD to request information “to address reporting, record-keeping, client identification, sanctions screening and ongoing monitoring requirements”.
Risk. A processor can be left paying for refunds and chargebacks the business cannot cover. A chargeback is a sale reversed after the customer disputes it with their bank. Helcim’s guide says payment processors may ask for more information “to ensure that the business and its owners can financially support any chargebacks or refunds that might occur.”
What each provider asks for
Square
Square’s help pages list what it needs to activate an account in Canada:
- For the owner: “Full legal name”, “Date of birth”, and a Canadian address (“PO Boxes are not permitted”).
- In some cases: a “Physical government-issued photo identification document” and a “Photo of your face (selfie)”.
- For a registered business: the legal business name, a trade name, a business registration number, an estimated annual revenue and the registered address. A website is optional.
- Beneficial owners: Square asks for the name and address of anyone who directly or indirectly owns or controls 25% or more of a corporation, plus the names of directors or partners.
Square says it cross-checks a registered business with “provincial and/or federal business registries”. If it cannot verify the business, “we can’t approve your account to take payments.” It adds that a recently registered business “may take a few weeks” to appear in registry records.
Stripe
Stripe’s support page says it collects and verifies information about:
- “The individual creating the Stripe account”,
- “The business associated with the account”, and
- “Any individuals who ultimately own or control that business”.
It may ask the person to “Upload a government-issued photo ID” and to “Provide a document showing your home address”. For a business, it “can typically accept a copy of your partnership agreement, articles of association, or certificate of incorporation”.
Stripe also reviews a business’s website, social media profile or app, if it uses one to sell. Stripe says it must include the business name and a description of what the business sells, and that an “account may not be able to be activated until your website contains the necessary information about your business.”
Stripe’s Canadian services agreement (last modified September 28, 2026) describes “User Financial Information” it may request, including “financial statements” and “bank statements”. It lists not providing requested information as one reason Stripe “may immediately suspend” an account.
Helcim
Helcim’s guide says its online application “usually takes about 5 to 10 minutes”, and that “new applications often receive approval in less than 24 hours.” It lists four things processors look at:
- The industry. Some industries have more fraud and chargebacks. Helcim names online gaming, travel services and insurance as examples.
- Average sale size. Very large single sales expose the processor to more risk.
- Time between payment and delivery. Helcim gives a construction project that takes months as an example.
- Financial health of the business and its owner.
Helcim’s terms (Canada) say Helcim may, at any time, require more documents to verify “your identity, the identity of your business, and the identities of your business’s principles and beneficial owners”, or to assess risk. The merchant authorizes Helcim to get information from “credit reporting agencies and information bureaus”. Helcim may also request “copies of financial statements” or “other security” from the owner or the company. Not providing them “may result in suspension or termination”.
TD Merchant Solutions
TD’s terms (version 0726) say the agreement “will take effect on the date that we approve your Application”. The application includes “any information provided by you with your application for Merchant Services, whether verbally or in writing”. During any review, the merchant “will provide us any financial information about you and any Guarantor that we request”.
TD’s fee list includes an application fee of $49 to $99, charged once.
Side by side
| Square | Stripe | Helcim | TD | |
|---|---|---|---|---|
| ID of the owner | Legal name, date of birth, Canadian address; sometimes photo ID and selfie | Government photo ID and proof of home address, if asked | May require documents to verify identity | Information in the application |
| Owners and controllers | Owners of 25% or more; directors or partners | Anyone who ultimately owns or controls the business | Principals and beneficial owners | Guarantors, where there are any |
| Business checks | Registry check of registered businesses | Business documents; website review | Industry, sale size, delivery time, finances | Financial information on request |
| Credit or financial checks | Not stated on the pages we read | May request financial and bank statements | Credit reporting agencies; financial statements; other security | Financial information on request |
| Published approval time | Not stated; a new registration “may take a few weeks” to reach registry records | Not stated | Often under 24 hours, per Helcim | Not stated |
After approval: holds, reserves and first payouts
Approval is not the last check. Each provider’s terms let it hold back money later.
Reserves. A reserve is money a processor holds back from a business’s sales to cover refunds and chargebacks.
- Square says it considers factors such as payment before delivery, industries “more prone to chargebacks”, a high dispute rate, uneven sales, and having no processing history with Square. It says it notifies the merchant by email and in the Square Dashboard “before the reserve goes into effect”, and reviews reserves “after a minimum of six months”.
- Helcim’s terms say it “may require a Reserve for any reason related to your use of the Services”, and may hold reserves on payments taken for goods or services delivered later.
- TD’s terms say TD may require “that you fund a reserve or provide other security” at any time.
- Stripe’s agreement defines a reserve as “collateral funds which Stripe holds and controls to satisfy any liabilities or potential liabilities”.
Holds. TD’s terms say it may, “at any time and without notice to you”, withhold settlement or freeze funds, “including while we or a Payment Card Network complete an investigation”. Helcim’s terms say it may withhold funds “by temporarily suspending or delaying payouts”.
First payouts. Stripe’s payouts documentation says it typically schedules the first payout “within 7–14 days, depending on your industry, country of operation, and risk level”. It lists Canada’s timing as 7 calendar days for the first payout and 3 business days after that.
More detail on timing and reserves: When You Get Paid: Deposits, Holds and Reserves.
After closing an account
Money can stay held after an account ends. TD’s terms describe a holdback kept for 180 days after termination, with the unused part credited after that. Helcim’s terms say it may keep a reserve “for a minimum of six (6) months from the termination date”. See How to Switch Processors in Canada and Early Termination Fees.
Where to go from here
A processor (the company that handles card payments) and a merchant account (the account that holds card sales) are not always the same thing; see Payment Processor vs Merchant Account. For each provider’s prices, see the pages on Square, Stripe, Helcim and TD Merchant Solutions, or How Much Does It Cost to Accept Credit Cards in Canada? Want a partner to review your statement? We will put you in touch. Start the free statement review.