Payment processor Moneris Solutions Corp. has become the first payment provider in Canada to process an Interac Online transaction. Interac Online is a new service that allows Canadians to pay for goods and services purchased on the Internet directly from their bank account.

With the introduction of Interac Online, consumers will have the flexibility to pay for purchases made over the Internet through a direct debit to their bank account. Up until now, credit cards were the primary payment option.

“Debit is the most popular way for Canadians to pay for their purchases — with Interac Online we’ve given Moneris’ online merchants access to the full potential of consumers’ spending power,” says Jim Baumgartner, president and CEO, Moneris.

Moneris recently signed an agreement with The Source By Circuit City to implement Interac Online into its comprehensive e-commerce Web site – TheSourceCC.com.

Moneris client online retailer DVDsoon.com is currently offering the service and was the first company to accept an Interac Online payment. The Boucherville, Quebec-based business was recently voted Best Canadian Web DVD Retailer by the Canadian Home Entertainment industry.

A May 2004 survey conducted by Leger Marketing for Moneris Solutions found that nearly two-thirds of Canadians (65%) prefer to use their debit or credit card for their purchases. And as the value of the purchase increases, so too does the preference to use a card for payment. For purchases in the range of $25 to $75, debit is the preferred method of payment for about half of Canadians (49%), followed by credit (25%) and cash (24%). For purchases greater than $75, credit and debit cards reign supreme combining for 81% of all payments.