Interac Online is a popular Canadian payment method that extends the use of conventional debit payments online.
Due to a national preference for debit over credit, it is a valuable method to increase sales and attract online shoppers.
We are pleased to announce that it has recently become an official payment service provider able to offer the payment method to customers worldwide.
For international ecommerce players in the Canadian market, accepting Interac is a huge advantage as it provides the ability to reach a critical mass of Canadian customers with the familiar payment method for Canadian shoppers.
For customer segments which have a particularly strong preference for debit over credit, (such as younger customers who may not have credit cards) it is a potentially game-changing advantage.
- 24 million: Canadians who have a bank card
- 9.5 million: Number of Canadians enabled to use Interac Online
- 73%: People who bank and shop online and also want debit online
- 74%: People who prefer to use their own money over credit
Market situation and making payments
Interac Online is currently offered by the Bank of Montreal, RBC, Scotiabank, and Canada Trust.
By default, any online banking customer at these institutions is able to use it as a payment method – a figure that currently stands at around 9.5 million Canadians.
When a customer chooses to pay with Interac Online, he or she is redirected to the Interac web page, and asked to select their bank.
After logging in, selecting the account, and confirming the amount, the customer is returned to the retailer’s website for the confirmation page.
Advantages of using this payment method
In terms of ecommerce, many merchants offer only credit cards as a payment option. But with a market preference for debit, Interac fills a gap in the payment industry by offering merchants and consumers a secure non-credit based alternative payment option for online shopping.
In terms of security, there are four key advantages to Interac Online:
- No personal banking information is shared with the merchant, which reduces claims of fraudulent transactions and chargebacks.
- Authorization is controlled by the customer through online banking.
- Funds are debited directly from the customer’s chosen bank account via the bank’s secure network.
- The merchant is guaranteed once the transaction is approved.
Interac Online is currently supported by a significant number of online retailers.
If your business is seeking to grow its ecommerce footprint in the Canadian market, we advise you to consider this payment option.