Some banks have chosen to develop their own in-house payment processing systems, delivering end-to-end services directly to their customers. Other banks have formed strategic partnerships with third-party providers.
In this article, we’ll explore how Canada’s major banks approach payment processing, highlighting the strategies they use to serve businesses of all sizes. From internal solutions to partnerships, we’ll provide an overview of each bank’s approach. .
We’ll also provide a list of Canadian banks and Credit Unions with their payment processing models, offering insights into how each institution navigates this critical aspect of modern commerce.
Different Models for Canadian Banks
Each bank has its own strategy for offering payment processing, either by managing everything in-house or partnering with third-party providers. Let’s explore how Canada’s major banks approach payment processing and how their strategies meet the needs of businesses across the country.
Banks with In-House Payment Processing
Some Canadian banks have built their own payment processing systems. These banks provide a one-stop shop for businesses, managing everything from the technology to the financial transactions. With in-house systems, the bank directly controls the entire process, ensuring streamlined services for their customers.
For example:
- TD Merchant Solutions offers a fully integrated payment processing service. They provide point-of-sale (POS) terminals, online payment gateways, and mobile payment solutions.
- Scotiabank also has internal solutions for businesses, helping merchants process transactions securely.
These in-house services are ideal for businesses looking for simplicity and the convenience of dealing with a single provider for all their banking and payment needs.
Banks That Partner with Third-Party Providers
Not all banks manage payment processing on their own. Some partner with third-party providers to offer specialized services. These partnerships allow banks to focus on their core financial services while leveraging the technology and expertise of dedicated payment processors.
For example:
- RBC (Royal Bank of Canada) works with Moneris, one of Canada’s largest payment processing companies. Moneris provides businesses with POS systems, online payment tools, and fraud protection.
- CIBC is uses an American partner called Global Payments to handle their payment processing..
This approach allows banks to offer a wide range of services without having to develop or maintain the technology themselves.
Top 5 Canadian Banks
Canada’s banking landscape is highly consolidated compared to the United States, with the top five banks (“the big five”) controlling a significant portion, close to 90%, of the financial market. These banks—Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), Bank of Montreal (BMO), Canadian Imperial Bank of Commerce (CIBC), and Scotiabank—play a central role in the nation’s economy. Their dominance extends to payment processing, where each has unique strategies to provide merchant services to businesses.
Unlike in the U.S., where the banking sector is more fragmented and features a broader array of payment processors, Canadian banks often establish direct partnerships with leading processors. These relationships allow them to offer reliable, secure, and scalable solutions to merchants.
1. Royal Bank of Canada (RBC)
Partner: Moneris Solutions
RBC is one of the co-founders of Moneris Solutions, a joint venture established in 2000 with BMO. Moneris has become a leading payment processor in Canada, offering comprehensive solutions like point-of-sale (POS) systems, e-commerce payment gateways, and fraud protection.
2. Bank of Montreal (BMO)
Partner: Moneris Solutions
As the other co-founder of Moneris Solutions, BMO also benefits from this joint venture by providing its business clients with top-tier payment processing services. Moneris supports merchants with a wide range of tools, including secure transaction processing, reporting, and analytics.
3. Toronto-Dominion Bank (TD)
Service: TD Merchant Solutions
TD has taken a different route by managing its own payment processing platform, TD Merchant Solutions. This in-house system enables TD to offer tailored solutions to businesses, providing a high level of control over the customer experience.
4. Canadian Imperial Bank of Commerce (CIBC)
Partner: Global Payments
CIBC has partnered with the USA company called Global Payments, a leader in payment technology and services. This partnership allows CIBC to offer businesses a flexible and reliable payment processing solution. Global Payments provides a full range of services, including credit and debit card processing, online payment systems, and fraud prevention.
5. Scotiabank
Partner: Chase Merchant Services
Scotiabank collaborates with the USA company called Chase Merchant Services to provide payment processing solutions to its business clients. Chase offers tools such as POS systems, e-commerce integration, and multi-currency processing, making it an ideal partner for businesses with global operations.
Here’s an overview of Canada’s top five banks, highlighting their total assets, annual revenue, market capitalization, and estimated market share:
| Bank | Total Assets (CAD) | Annual Revenue (CAD) | Market Capitalization (CAD) | Estimated Market Share |
|---|---|---|---|---|
| Royal Bank of Canada (RBC) | $2.0 trillion | $56.13 billion | $217.3 billion | 20% |
| Toronto-Dominion Bank (TD) | $1.9 trillion | $51.84 billion | $143.0 billion | 19% |
| Bank of Nova Scotia (Scotiabank) | $1.4 trillion | $32.31 billion | $79.5 billion | 16% |
| Bank of Montreal (BMO) | $1.2 trillion | $31.20 billion | $85.9 billion | 14% |
| Canadian Imperial Bank of Commerce (CIBC) | $975 billion | $23.32 billion | $68.6 billion | 12% |
Canadian Credit Unions and Payment Processing
Credit unions play a big role in Canada’s financial system, especially for small and medium-sized businesses looking for community-focused banking solutions. While they may not have the scale of the country’s major banks, credit unions provide robust payment processing services through strategic partnerships and collaborative networks.
Central 1 and its involvement in payments
One of the key players supporting credit unions in payment processing is Central 1 Credit Union. Central 1 is a cooperative financial network that processes payments for many of Canada’s credit unions. Here are some key Facts About Central 1:
- Processes over 645 million payments annually.
- Works with 295 financial institutions, including the majority of credit unions across Canada.
- Provides a wide array of payment solutions, including EFT (electronic funds transfer), online payments, and mobile transactions.
Alternatives to Central 1 in Canada
In Canada, Central 1 Credit Union is a prominent organization that provides payment processing and other financial services to numerous credit unions, particularly in British Columbia and Ontario. However, other regional entities offer similar support within the credit union system:
Atlantic Central: Serving credit unions in the Atlantic provinces (New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island), Atlantic Central offers payment processing, liquidity management, and other financial services to its member credit unions.
Desjardins Group: Operating primarily in Quebec, Desjardins is a federation of caisses populaires (credit unions) that provides a comprehensive range of financial services, including payment processing, to its members. It is one of the largest cooperative financial groups in North America.
Credit Union Central of Manitoba (CUCM): CUCM supports credit unions in Manitoba by offering payment processing services, liquidity management, and other essential financial services to its members.
Top Credit Unions in Canada and Their Payment Processing Solutions
Credit unions in Canada play a key role in providing financial services, particularly to small and medium-sized businesses. While their scale is smaller than the big banks, many credit unions collaborate with regional partners or cooperative networks to offer competitive payment processing solutions. Here’s a look at some of the top credit unions in Canada and how they support businesses with payment services.
1. Vancity (British Columbia)
Vancity, Canada’s largest community credit union, serves over 543,000 members in British Columbia. For payment processing, Vancity partners with providers like Global Payments to deliver merchant services, including POS systems, mobile payment solutions, and e-commerce tools. Businesses benefit from personalized service and competitive rates tailored to their local market.
2. Meridian Credit Union (Ontario)
Meridian, Ontario’s largest credit union, serves over 370,000 members. It offers merchant payment processing through partnerships with providers such as Moneris. This allows Meridian to deliver advanced payment tools, such as multi-terminal POS systems and contactless payment options, helping businesses stay competitive.
3. Coast Capital Savings (British Columbia)
Coast Capital Savings, based in British Columbia, serves over 600,000 members. Coast Capital collaborates with payment processing leaders like Elavon to provide businesses with a full suite of payment solutions. These include in-store payment terminals, online payment gateways, and mobile payment systems, all supported by 24/7 customer service.
List of Major Canadian Banks and Credit Unions
Compiling a comprehensive list of all banks and credit unions in Canada along with their respective credit card processors is challenging due to the dynamic nature of financial partnerships and the vast number of institutions.
However, here’s an overview of major Canadian banks and some credit unions, along with their known credit card processing partnerships:
| Financial Institution | Payment Processing Approach |
|---|---|
| Affinity Credit Union | Partners with external providers for payment processing solutions. |
| Alterna Savings and Credit Union | Partners with external providers for payment processing solutions. |
| Bank of Montreal (BMO) | Partnered with Moneris Solutions, a joint venture with RBC. |
| Canadian Imperial Bank of Commerce (CIBC) | Partnered with Global Payments from USA. |
| Canadian Western Bank | Partners with Global Payments from USA. |
| Coast Capital Savings | Partners with Elavon from USA. |
| Desjardins Group | Operates its own in-house payment processing services. |
| Equitable Bank | Partners with third-party providers for payment processing solutions. |
| First West Credit Union | Partners with external providers for payment processing solutions. |
| HSBC Bank Canada | Partners with Global Paymentsfrom USA. |
| Laurentian Bank of Canada | Partners with Elavon from USA. |
| Meridian Credit Union | Partners with external providers such as Moneris. |
| National Bank of Canada | Partnered with Global Payments from USA. |
| Prospera Credit Union | Partners with external providers for payment processing solutions. |
| Provincial Credit Union | Partnered with Canadian based Clearly Payments. |
| Royal Bank of Canada (RBC) | Partnered with Moneris Solutions, a joint venture with BMO. |
| Scotiabank | Partnered with Chase Merchant Services from USA. |
| Servus Credit Union | Partners with Moneris for payment processing services. |
| Steinbach Credit Union | Partners with external providers for payment processing solutions. |
| Toronto-Dominion Bank (TD) | Operates its own in-house service, TD Merchant Solutions. |
| Vancity Credit Union | Partners with Global Payments from USA |
This alphabetical table provides an organized overview of the financial institutions in Canada and their corresponding payment processing arrangements. For further details, consulting the individual institutions or their official websites is recommended.
Please note that while many financial institutions partner with third-party processors, some manage their own payment processing services. Additionally, partnerships can evolve, so it’s advisable to consult directly with the institution or visit their official website for the most current information.
Payment Processor Partner for Canadian Banks
Clearly Payments has long been a great option for Canadian banks and credit unions to be the payment processor partner. Clearly Payments offers pure referral or white label.
Learn more about bank partnerships with Clearly Payments
- Wide range of supported industries
- A full set of payment products to accept payment anytime, anywhere
- World-class customer service
