Welcome to Federated Payments Canada’s Frequently Asked Questions (FAQ) Page.
If you don’t see the answer you’re looking for, just give us a call or drop us an email and we would be happy to help.
Credit Card Processing — The Basics
- What is the first thing I need to do to start accepting credit cards?
- How do I apply for a merchant account?
- Which credit cards will I be able to accept?
- Can I also accept debit cards?
- How long will it take before I can start accepting credit and debit cards?
- When will I receive funds from the transactions which I process?
- How are credit cards charged?
- What is the difference between a void and a refund?
- What types of processing solutions does Federated offer?
- How do I process other payment methods, such as checks?
- What is MOTO processing?
- What is a virtual terminal?
- What is PCI compliancy?
- How I program my equipment?
- Why do different accounts have different rates?
Already Accept Credit Cards?
- Why switch to Federated Payments?
- Is my existing POS compatible with Federated Payments?
- What other services does Federated Payments offer merchants?
- How do you determine my monthly minimum?
- What if I already have processing equipment, but want to switch to Federated Payments’ services?
- What is SafePay?
- Do you offer merchant accounts to businesses located outside of the United States?
- Are there any businesses that you do not allow to apply?
- What kind of support does Federated offer in case something goes wrong?
Current Federated Customers
- How do I change my address and/or telephone number?
- How do I change my business name and/or the description of my business appearing on my customers’ billing statements?
- How do I increase my processing limits?
- How do I change the ownership information if I’ve recently acquired or sold the business?
- How do I know what has been deposited into and/or deducted from my checking account?
New Merchant FAQs
What is the first thing I need to do to start accepting credit cards?
You will need a merchant account set up for your business. This will give you the ability to accept credit and debit cards in person, online, or over the phone.
How do I apply for a merchant account?
If you would like to sign up for a merchant account, you can call us at 866-912-8770, sign up online, or email us.
What credit cards will I be able to accept?
Federated Payments offers processing services for all major credit cards including Visa, MasterCard, Discover, American Express, Diner’s Club, and JCB.
Can I also accept debit cards?
Yes. Federated leads the industry in debit card processing with access to both national and regional networks including Interac.
How long will it take before I can start accepting credit and debit cards?
With Federated, we can get you up and running within the same day in many cases.
When will I receive funds from the transactions which I process?
Funds from your processed transactions should be deposited into your checking account within 2-3 business days.
How are credit cards charged?
Upon swiping a credit card in a POS terminal or entering the required customer information into a virtual terminal, the information is sent from the merchant to Federated Payments. Federated then requests the money from the issuing bank, which is deposited directly into your bank account.
What is the difference between a void and a refund?
A void must be performed prior to the authorization of a transaction. After a transaction is authorized, the transaction cannot be voided by the merchant. A refund must be applied to the customer’s account.
What types of processing solutions does Federated offer?
Federated Payments Canada offers a wide range of processing solutions for merchants so you can choose which is right for you. From retail stores to ecommerce and mail order to mobile transactions, Federated has the right solution for your business.
How do I process other payment methods, such as checks?
Federated offers check acceptance solutions which provide you with 100% guaranteed electronic payment transferred directly to your bank. We eliminate the hassle of bounced checks or trips to the bank
What is MOTO processing?
MOTO (mail order/telephone order) processing is also known as a “card not present” MOTO transactions allow customers to make purchases by providing their credit card information without providing a signature over the telephone, Internet, or via mail.
What is a virtual terminal?
A virtual terminal is a processing terminal which merchants may use to process transactions online. Virtual terminals can be accessed from any computer with an Internet connection.
What is PCI compliant?
Payment Card Industry (PCI) compliancy is required for all equipment for most transactions. Federated Payments offers a full line of secure PCI compliant POS equipment certified by Visa/MasterCard and American Express.
How do I program my equipment?
Federated Payments makes getting up and running quick and easy with our free training and set-up for new merchant accounts.
Why do different accounts have different rates?
Different accounts have different rates depending on your business’s specific needs and risk factor. For example, some accounts may strictly be store front retail while some businesses accept credit cards over the phone (or “card not present” which presents a slightly higher risk leading to slightly increased rates.
Already Accept Credit Cards?
Why switch to Federated Payments?
Federated offers the lowest rates available, guaranteed! We assure processing for all major credit and debit cards, allowing you to accept all your customers.
Is my existing POS compatible with Federated Payments?
Federated’s processing solutions are compatible with most POS systems. To ensure your POS system is compatible, contact us.
What other services does Federated Payments offer merchants?
Besides credit card processing, Federated Payments also does check processing. We offer cash advances for merchants, check acceptance services, as well as gift cards and customer loyalty programs.
How do you determine my monthly minimum?
Every business’s monthly minimum is based on the amount of transactions processed throughout the month.
What if I already have processing equipment, but want to switch to Federated Payments’ services?
No problem. Federated Payments supports all major terminals and processing equipment and would be happy to discuss the Federated advantage with you in detail. Contact us to see if you equipment is compatible.
What is SafePay?
SafePay is Federated Payments’ proprietary ecommerce gateway that allows merchants to submit transactions online quickly and securely. Using SafePay, you can process sales, authorizations, refunds, and capture existing or voice authorized transactions. The SafePay Gateway can be accessed from any computer Internet access at any time, providing a quick and convenient way for merchants to process transactions.
Do you offer merchant accounts to businesses located outside of the United States?
Yes, operating under the name MSI Canada, Federated is the leading provider of merchant services in Canada.
Are there any businesses that you do not allow to apply?
Yes. To hold ourselves to the highest level of integrity, Federated does not provide services for certain types of businesses. Click Here to view full list
What kind of support does Federated offer in case something goes wrong?
At Federated, our world-class customer service and technical support is available 24/7/365 days a year. With Federated, you will always get a support expert on the phone quickly who is located in either our New York or Canadian offices.
Current Federated Customers
How do I change my address and/or telephone number?
A simple request in writing can be faxed to the attention of our Customer Service Department at (631) 390-1247. Upon receipt, the change will be completed within two (2) business days.
How do I change the business checking account information that is linked to my FEDERATED merchant account?
It is extremely important to notify FEDERATED immediately upon any change to the checking account that is linked to your FEDERATED merchant account. Failure to notify FEDERATED may result in the delayed deposit of funds to your checking account or funding to the wrong checking account. A void check for the new account must be faxed to our Customer Service Department at (866) 545-1436. In the event of a starter check, a bank letter is also required. The change will be completed within two (2) business days. The original checking account should be left open with funds available during the transition to the new checking account.
How do I change my business name and/or the description of my business appearing on my customers’ billing statements?
If there is a change in the business name and/or DBA, the Articles of Incorporation must be provided to FEDERATED. To make this change to your merchant account, please fax a written request to our Customer Service Department at (631) 390-1247.
How do I increase my processing limits?
This request must be submitted in writing with the new ticket amount and average monthly volume amount. To make this change to your merchant account, please fax the written request to our Customer Service Department at (866) 545-1436. Please include your DBA name and merchant number in your request.
>How do I change the ownership information if I’ve recently acquired or sold the business?
The new owner must complete a new Merchant Application and Agreement. Contact your Sales Representative for assistance, or you may contact FEDERATED directly at (800) 217-8711
How do I know what has been deposited into and/or deducted from my checking account by FEDERATED?
This information is available in several formats. A monthly processing statement is mailed the first week of each month for the preceding month’s activity. Checking your bank statement is also an option. Deposits and withdrawals will be listed on your bank statement as “Bankcard Processing”. A third option is to call our Customer Service Department at (800) 217-8711.
How frequently are funds deposited into my business checking account?
Activity on your merchant account is processed on a daily basis and is reported according to the processing date. The transfer of funds to or from your checking account takes place through the Automated Clearing House (ACH). Depending on your merchant account type, the transfer may vary from 2 to 5 business days. Weekends and Federal holidays are not considered as business days.
Prohibited Business Types*
- Acai or Health Related Teas
- Adult Material, Pornography
- Anti-Aging Products
- Airlines, Air Carriers
- Bankruptcy Attorney
- Business Opportunity
- Buying/Shopping Club
- Cash for Gold Non Face to Face
- Charters, Tours
- Check Cashing Services
- Collection Agencies
- Colon Cleansers and other Detox Products
- Computer Bulletin Boards
- Continuity Business – Non Face to Face
- Coupon/Gift Certificates
- Credit Repair/ Credit Insurance
- Companion Services
- Cruise Lines
- Custom Clothing Non Face to Face
- Direct Inbound Teleservices (5967)
- Direct Marketing Travel (5962)
- Direct Outbound Telemarketing (5966)
- Discount Medical and/or Drug Plans
- Downloading of Software Sales (Movies/Music)
- Escort Services
- Finance/Loan Services
- Firearms – Non Face to Face Transactions
- Furniture Sales Non Face to Face
- Gaming/Betting Activities (7955)
- Gentlemen Clubs
- Glucose Strips
- Golf Clubs (MO/TO) – Gimmicky Products
- Hair Restoration Services
- Horoscope & Fortune Tellers
- Internet Based Work from Home Plans
- International Freight Forwarding Services
- Investment Opportunities
- Loan Modification/Reduction Services
- Massage Parlors, Non-Licensed
- Mattress Sales Non Face to Face
- Medical Marijuana
- Mortgage Modification/Reduction Services
- Mortgage Services (Security Sales)
- Multi-Level Marketing
- Non Face to Face Transactions with Products only being provided through Drop Shipping
- Non Face to Face Computer Repair/PC Support Transactions
- On-line Malls/Aggregators, On-line Auctions
- Pay Per Click Web Merchants “Parked Websites”
- Pet Sales Non Face to Face
- Pharmacies – Non Face to Face
- Pin Based / Rechargeable Calling Cards
- Products with Unreasonable Guarantees/Expectations
- Real Estate/Property Sales
- Royalty Payments / Fees
- Self Help Books
- Services offering Government Monetary Grants and other “Business Opportunity” Schemes
- Sports Forecasting
- Teeth Whitening Products
- Telephony Services (VOIP)
- Third Party Billing
- Ticket Broker
- Time Share Sales/Rentals
- Tobacco, Alcohol, Firearms, or any Age Sensitive Products that are non face to face transactions
- Traffic Ticket Repair Services
- Travel Agencies, Travel Clubs
- Used Vehicles
- Vitamin Business/Neutraceuticals Non Face to Face
- Water Purifiers
- Weight Loss Centers
- Wholesale Clubs
- Wire Transfer Company
*Federated Payments reserves the right to modify and/or change the prohibited business list without notice and at its sole discretion.