Obviously, having an online business in Canada is not the same as having one in the United States. Not only are they two different countries, setting up a business is different for each one.

If you’re in Canada and you want to start an online business, there are some things you must know so you won’t get frustrated. One of the things you will need is a merchant account. Otherwise, you’ll have a hard time selling products and you’ll have a hard time getting paid. As with setting up anything for a business, there are rules you must follow in order to get your merchant account in Canada.

Here are some of the things you need to know in order to get your Canadian merchant account:

* Merchant account providers want to know what type of products and/or services you are selling to the public. Since a bank is involved, there are some things that they’re not willing to take a risk on.

* They are in the business of making money, not losing it. If the bank finds out that some of the stuff you want to sell has been denied before, rest assured, your products will be denied as well. It’s better to advise them up front prior to applying for a Canadian merchant account.

* With the setup fee, most merchants account providers in Canada have them set up as non-refundable. You as a prospective merchant should seek alternatives in the event this doesn’t work out for you.

* You should provide the merchant account provider with enough information for them to base their decision on. Any little thing that you leave out can cause your merchant account to be denied.

Each bank is different as far as what products and services they accept and what they don’t accept. This is because some of these products and services are riskier than others. Each bank will be able to supply you with information regarding this.

This is a tricky situation because even though some banks favor some over others, in Canada, all transactions conducted online and considered to be high risk. That is the way the Canadian banks operate.

Here is a list of a few products and services the mass majority of Canadian banks will decline:

* Digital Downloads

* Online Prescriptions

* Money services

* Third party provider systems

There is a silver lining with selling products and services online in Canada. There are some things most if not all of the Canadian banks will probably take a chance on:

* Tourism

* Computers/software

* Jewelry

* Auctions

* Electronics purchased by consumers

If you do decide any of these things listed in Canada, the bank may require you to deposit additional funds in a security deposit or reserve. The bank also has the right to charge you higher rates. Since they feel they’re taking a high risk on you, if the business should happen to fail, they would still have their security deposit.

You should consult with the bank and make sure that you understand everything about getting a Canadian merchant account before you sign up.

Jennifer Loganathan is the President and CEO of Stradafee Limited. Stradafee is a leading international payments company based in New York. Stradafee is a retail and ecommerce payment processing provider specializing in international and offshore solutions. Stradafee also offers check processing, high risk merchant accounts and offshore merchant account options. Stradafee can help businesses of all industries and sizes. For more information on credit card processing and check processing please visit www.stradafee.com.