What makes this industry different
An online store never sees the card. That changes three things:
- The rate. Sales where the card is not present are priced differently from in-person ones.
- Extra network fees. Some card network fees apply only to card-not-present sales.
- Disputes. Fraud claims on card-absent sales follow their own rules.
Card not present (CNP) means the card and the cardholder are not at your location. Visa Canada’s rate sheet defines it as a sale where “the card and the cardholder are not at the merchant location and it is not possible to read the information on the payment credential.”
Fees to know about in this industry
Interchange online. Interchange is the fee your processor pays your customer’s bank. Visa Canada’s rate sheet:
| Visa Canada consumer credit card | In person (“Electronic”) | Card not present | Card not present, tokenized |
|---|---|---|---|
| Classic, Gold, Platinum | 1.25% | 1.40% | 1.35% |
| Infinite | 1.57% | 1.65% | 1.60% |
| Infinite+ | 1.60% | 2.30% | 2.25% |
| Infinite Privilege | 2.08% | 2.40% | 2.35% |
Tokenized means the card number was replaced by a stand-in number called a token. Smaller online sellers may also qualify for Visa’s Small Merchant card-not-present rates. See Visa’s Small Merchant Rates in Canada.
In the US, Visa’s sheet lists its card-not-present “Product 1” row at 2.04% + $0.10 for a Traditional Rewards card and 2.60% + $0.10 for a spend-qualified Visa Infinite card. Its in-person “Product 2” row is 1.65% + $0.10 and 2.30% + $0.10.
Network fees for online sales (Canada). TD’s fee list shows fees that apply only to card-not-present sales:
| Fee on TD’s list | Amount | When it applies |
|---|---|---|
| Visa DCSF Domestic Fee | 0.017% | Domestic card-not-present sales |
| Visa DCSF Foreign Fee | 0.0396% | Cross-border card-not-present sales |
| Mastercard Digital Enablement Fee | 0.0226%, minimum $0.0280 | “all Canada Acquired approved and declined Card-Not-Present transactions” |
DCSF is Visa’s Digital Commerce Services Fee. See Assessment Fees Explained.
Published online rates
| Provider | Online, domestic cards | Keyed in or card on file | Cards from other countries |
|---|---|---|---|
| Stripe Canada | 2.9% + CA$0.30 | +0.5% for manually entered cards | +0.8% (+2% if currency conversion is needed) |
| Square Canada | 2.8% + 30¢ | 3.3% + 15¢ | +1.5% |
| Helcim (Tier 1 markup) | Interchange + 0.50% + 25¢ | Interchange + 0.50% + 25¢ | +0.68% in CAD, +1.13% in USD (Visa and Mastercard) |
| Stripe US | 2.9% + 30¢ | +0.5% for manually entered cards | +1.5% (+1% if currency conversion is needed) |
| Square US (Free plan) | 3.3% + 30¢ | 3.5% + 15¢ | Not listed on the page we read |
Square US lists 2.9% + 30¢ online on its Plus ($49 a month per location) and Premium ($149 a month per location) plans. Stripe says it has “No setup fees, monthly fees, or hidden fees.”
More on foreign cards: Foreign Card Fees.
Average ticket and why it matters
Online rates often carry a larger cents part: 30¢ at Stripe and Square, 25¢ at Helcim’s lowest tier. On small orders, that cents part is a big share of the sale.
See Per-Transaction Fees.
Disputes and fraud
Fraud disputes on card-absent sales have their own rules. Visa’s rules give 120 calendar days from the processing date for “Other Fraud – Card-Absent Environment” disputes. For digital goods, Visa’s list of evidence includes a description of the goods, the download date, and details such as the IP address or device ID.
Published dispute fees:
- Stripe (Canada): a CA$15 “Dispute received fee” for each dispute, and a CA$15 “Dispute countered fee” for each dispute answered manually, returned for won disputes.
- Stripe (US): $15 and $15.
- Square (Canada): “There are no fees for dispute management services for chargebacks.”
More: Chargebacks: What They Cost and How They Work.
Equipment and software options
Online stores connect a payment page to the store software. PCI’s version 4.0 self-assessment form “SAQ A” is written for sellers whose payment page comes entirely from a PCI DSS compliant provider. See PCI Fees and Non-Compliance Fees.
Stripe and Helcim both say they are payment facilitators. See Payment Processor vs Merchant Account.
Contract terms to read closely
- Reserves and holds on online sales. See Payment Processor vs Merchant Account.
- Monthly fees for gateways and plans. See Statement and Monthly Fees.
- Surcharges in Canada, including online. See Surcharging Credit Cards in Canada.
Questions to ask a processor
- What rate applies to online sales, and is there a separate cents fee?
- Are tokenized sales priced differently?
- What do foreign cards and currency conversion add?
- What does a dispute cost, and is the fee returned if I win?
Where to go from here
On a statement, online sales are often listed apart from in-person sales, each with its own rate. How to Read Your Merchant Statement shows where they sit. Country hubs: Canada and the United States.
Want a partner to review your statement? We will put you in touch. Start the free statement review.