Over the last few years the number of Canadian small businesses processing payments, filling invoices and selling online has skyrocketed, along with the number of online payment providers.
Recently, Toronto-based cloud accounting provider FreshBooks became the latest company to join the increasingly competitive landscape, leaving small business owners with a plethora of options.
“I think effectively we’re going from a world of oligopoly, where the banks were the only game in town, to a world where there’s more choice,” said Mike McDerment CEO of FreshBooks. “Managing your cash flow is basically the lifeblood of your business as a small business owner, so with something so mission critical, you want to choose carefully.”
But with so many options, choosing the right payment processing solution can be difficult for small business owners. Here we break down some of the key players, their fees, the services they offer and identify which small businesses they service best.
FreshBooks
Claim to fame: With over 5 million users in more than 120 countries, FreshBooks is the most popular cloud-based accounting solution for small business owners.
Key features: Setting up an online payment service with FreshBooks is quick and easy, especially for existing customers, says Mr. McDerment. “You can very quickly create an invoice, offer the ability to accept online payment, and send that off to your client,” he said, adding that FreshBooks is also known for its quality customer service.
Fees: 2.9 per cent flat fee
Ideal for: Services and trades. “We’re not a shopping cart, FreshBooks is not specifically focused on people who sell things,” said Mr. McDerment. “We’re very focused on service-based small business owners, tradespeople like lawyers and marketing firms and people who get paid for their time and expertise.”
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