Reduce Credit Card Fees by Automating Interac E-Transfers

If you’re running a business that relies on online registrations and payments, you know credit card processing fees eat into your profit margins.

By offering automated Interac e-transfers as a payment option for your clients, you can significantly reduce processing fees while keeping all the benefits that credit card payments offer.

This is especially true if you are running a service business with a high level of registrations, like Dance studios, Gymnastics clubs, Swim schools or summer camps.

In this article, we’ll explore how you can reduce credit card fees by automating Interac E-Transfers.

• Difference in Cost Between Credit Card and Interac
• Advantages and Disadvantages of Interac E-Transfer
• Advantages and Disadvantages of Credit Cards
• How to Automate Payments and Settlement with Interac
• Canadian Registration Platform that integrates Interac E-Transfers

Difference in Transaction Fees Between Credit Card and Interac

Credit card processing fees typically range between 2.5% and 3% per transaction, depending on your service provider and the type of card being used. Over time, this adds up, especially for businesses with high transaction volumes.

In contrast, Interac e-transfers come with a much lower fee structure. Most transfers only incur a small, flat fee (usually between $0.50 and $1.0) or are free, depending on your bank and account type. For organizations taking in a large number of registrations, this can result in substantial savings.

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Comparing processing fees from different payment methods

	Interac	Credit card	Bank transfer	Offline
Processing fees*	0%	2.9% + 30c	1% + 40c	Yes
Payout	Instant	1-3 days	5 days	Client dependant
Settlement	Automated**	Automated	Automated	Manual

*Excludes all fees charged by registration software and can vary from bank to bank. Credit card fees and bank transfer fees are based on stripe fees. Note that Activity Messenger charges a 1% fee on all transactions.
**Activity Messenger is the only registration platform that can automate Interac settlements.

Advantages and Disadvantages of Interac E-Transfer

Advantages:

• Lower Fees: The most significant benefit is cost savings, especially as the volume of total sales paid online increases.
• Security: Interac is a secure payment method that includes encryption and authentication protocols.
• Instant Payments: Transfers are processed in near real-time, meaning you receive your funds quickly.
• No Chargebacks: Unlike credit cards, Interac transfers are final and can’t be reversed by the customer.

Disadvantages:

• Manual Processing: Many systems require you to manually review and accept each transfer, which can be time consuming.
• Limited Automation: Unless integrated with a platform like Activity Messenger, automating and processing Interac e-transfers can be challenging.
• User-Friendliness: Some users may find Interac more complex than simply entering credit card information.

Advantages and Disadvantages of Credit Cards

Advantages:

• Convenience: Credit card payments are familiar for most customers, which can improve conversion rates.
• Automation: Credit card payments are processed automatically, without the need for manual intervention.

Disadvantages:

• High Fees: Processing fees can quickly add up, especially for businesses with high sales volumes.
• Chargebacks: Credit card payments come with the risk of chargebacks, which can be costly and time-consuming to resolve.
• Delayed Settlement: Depending on your provider, it may take several days for funds to be settled in your account.

How to Automate Payments and Settlement with Interac

Many Canadian businesses are reluctant to accept Interac e-Transfers when collecting a high volume of payments because of the manual work involved. However, with the right registration platform, you can automate this process to make it as seamless as accepting credit cards.

Activity Messenger provides a fully automated solution for processing and settling Interac e-transfers. Participants fill out their registration form and are prompted to pay with Interac when they get to the invoice, where they can easily transfer funds through their banking app.

Once the payment is received, it’s automatically matched to the corresponding invoice/registration in the account. This eliminates the need for verification, ensures a smoother transaction process, and automatically settles invoices as payments are received into your bank account.

A Registration Platform that integrates Interac E-Transfers

When looking for an online registration platform that supports Interac E-transfers, there are several key factors to consider:

1. Manual vs. Automated Processing: Many platforms require manual intervention for each Interac payment. This can be time-consuming and impractical for organizations with high transaction volumes. A Canadian software like Activity Messenger automates the entire process, from registration to payment reconciliation and even automatic cancellation if payment is not received on time.
2. Customer Experience: Consider how easy it is for your clients to use. Interac transfers may not be as familiar as credit card payments, so having an intuitive system is essential.
3. Cost Savings: Evaluate the potential savings in processing fees. While the savings from Interac transfers can be significant, ensure that your platform’s fees and structure align with your budget.

Switching to Interac E-transfers is a great way to reduce credit card fees.

When automated through a platform like Activity Messenger, you can enjoy the benefits of lower fees, faster payments, and fewer manual tasks, all without sacrificing customer convenience.

Take the time to evaluate your options and find a registration platform that fits your needs, and start enjoying the savings today.