Home BUSINESS A Guide To B2B Credit Card Processing

A Guide To B2B Credit Card Processing

The last few years saw a drastic change in payment systems, making transactions a lot easier both for the business and its customers. Payment methods have been digitized with the introduction of contactless mobile transactions, offering customers to choose their desired options while making online purchases.

Today, companies are accepting simple-to-use eWallets and UPI payment systems like PayPal, Venmo, Zelle, and others, which enable one-click payments on-the-go. Besides, many big technology companies like Google, Apple, and Samsung have come up with their payment platforms in the last few years. Using these technologies, e-shopping has become more efficient as you can make payments simply by touching your smartphone to a card terminal.

We, as customers, know how easy our lives have become with these direct bank transfer options. However, like B2C (business to customers) payments, the last few years have also seen a spurt in the development of B2B (business to business) payment procedures.

In this article, we will be discussing the various aspects involved in B2B transactions to help your business grow by saving unnecessary costs on paper checks.

What Is B2B Payment Processing?

B2B payments are those transactions that take place between two merchants for selling goods or services. For example, when a restaurant pays its suppliers for purchasing raw materials like vegetables, fruits, spices, meats, etc., that is a B2B payment.

The modern B2B payment processing systems support online transactions for more efficient and faster payments. A payment processing solution helps a company overcome challenges like –

  • Looking for ways to drive more sales on its website
  • Improving client satisfaction rates
  • Streamlining core business processes with which an organization interacts with clients
  • Removing any obstacles that might get in the way of sales.

As a business owner, you must ensure that your payment gateway has the right tools and features to boost your sales and conversions. Digital payments are gaining momentum over the years, and according to Statista, the total transaction value associated with digital payments was $4.1 trillion in the last year. It is, however, expected to reach around $4.8 trillion in 2020.

Types Of B2B Payment Systems

The most widely used payment methods in B2B payment processing are –

  • Paper checks: Paying by checks is one of the easiest procedures, as you only need a piece of paper. However, payments received through checks can take up to a few days, which is a major downside for many businesses.
  • Wire transfer: It offers the opportunity to move money faster from one account to another, sometimes even within a few hours. Services offering wire transfers include SWIFT and Fedwire.
  • Credit cards: Credit cards come with loads of benefits, like the reward programs in which payees receive credit points with each payment done. This is why more business owners are relying on credit cards while paying their bills.
  • ACH (Automated Clearing House): ACH payment process involves transferring funds from your checking account to your client’s account. To use this option, you and your client businesses need to fill up and submit some paperwork.
  • Cryptocurrency: Cryptocurrency has gained huge popularity in recent years, especially for businesses dealing with overseas clients. Through this method, you can easily receive payment from clients residing in other countries through wire transfer.

Tips To Help You Select The Right B2B Payment Processing Solution

It’s easy to get distracted, seeing so many attractive offers from various payment processing providers. But there are certain things you need to consider while making your selection. These are:

1. Go For Local

Look for local providers as they can offer not only cost-effective solutions but also high-quality services. If your services are restricted to your country, then local acquiring banks would be more beneficial for your business. However, if you sell globally, it is better to select a PSP (Payment Service Provider) who serves numerous countries.

2. Check For Experts In Your Industry

You will always be benefited in some way or the other if you select a provider that specializes in your business or industry type, because it matters! For example, if you own a gambling or online casino portal, it’s always safe to go for experts in your particular niche to ensure the most efficient solution, both in terms of quality and security.

3. List Down Your Preferred Payment Methods

Before beginning the selection process, make a list of all the payment methods you would like to use. Ensure that your PSP supports all or most of your preferred payment gateways, including popular e-checks, credit card networks, and electronic wire transfer options.

4. Put Security First

You must choose a payment solution that’s 100% secure and follows the highest privacy protocols. A trustworthy PSP would always have PCI DSS certification, which ensures 100% security of all your sensitive financial information. It also prevents you from facing chargebacks or fraud cases.

5. Check The Services Offered

This is another key factor that you must consider while choosing your PSP. it is a matter related to your finances, so you would want to ensure that your provider is offering the required services. The significant services that your PSP must provide are:

  1. Support Services: Full 24/7 customer support is important to solve any payment issues right away because it’s your hard-earned money! Your PSP must support not only you but also your recipients/senders.
  2. Subscriptions and Recurring Payments: Recurring clients should be given extra attention, and therefore, you must ensure that your PSP supports recurring payment processing and subscriptions. Your subscribers should have the option of direct debit options through popular payment platforms.
  3. Risk Protection: Most direct debit payments charge additional costs for debt collection reminders and risk warnings. Look for a PSP offering risk protection services, which would protect you against all these extra costs. Some providers also provide credit details, address, and even blacklist the checks of clients.
  4. Other Additional Services: Depending on your industry type and target audience, your PSP can provide additional services, such as payment monitoring, billing, and giving debt collection notices. Some of them even offer factoring and financial support, like currency conversion management and business accounts.

Conclusion

In short, look for a B2B payment processing system that supports you in the long run and provides value-for-money services. Because all you want is timely payments and reach a larger client base. Make sure your PSP keeps your revenue growth while maintaining security and quality both for you and your clients.

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