The Complete Guide To B2B Payment Processing

B2B payment processing might seem like a confusing world at first, but once you get the hang of it, you will begin to understand what the best payment gateway or payment methods are for your business and how much they’ll cost. This article offers an overview of the B2B payment landscape to help you understand the world of B2B payment processing service so you never get it wrong.

Tips for Choosing a B2B Payment Processing Service

You’ll likely be inundated with plenty of ads when searching for a payment processing service on the web, but there are certain things to keep in mind:

1. Go Local 

Look for local options when starting out. In much the same way local items cost less than imported ones, using your country’s bank/PSP to open a merchant account will save you extra cash, and this is especially true for those that want to sell local.

2. List Your Preferred Payment Methods

Next, make a list of your preferred payment methods. Your chosen method should support a large number of credit card networks, electronic wire transfers and e-checks.

3. Look For Experts In Your Field

PSPs typically specialize in a specific industry, which affects what solutions they offer. Always hunt for the one that has experience within your niche industry for a better fit.

3. Choose Nothing Less Than 100% Secure

Security is crucial to your success. Any PSP worth its salt will always hold a PCI DSS certificate. A PCI DSS certificate guarantees 100% security for you and your client’s financial information. Always ask your chosen PSP if they have this certificate.

4. Watch Out For Chargebacks

Be on the lookout for chargebacks. Chargebacks don’t only happen in the B2C segment, they are also inevitable for high-risk B2B projects.

5 Ways Businesses Collect B2B payments

B2B payments can be processed in several different methods. Here are some options for your B2B payment solution:

Credit Cards

Popular as the standard way many businesses collect payments online, credit card payments are reliable, but most come with percentage fees. When processing a large volume of payments, these fees can compound pretty quickly.

Bank/Wire Transfers

Bank and wire transfers offer secure and reliable payments between financial institutions. However, these payments are not easy to set up. This method offers the ability to send large amounts between banks, although fees are usually involved in this.

Checks

While checks may feel outdated, most businesses still accept them. Although checks offer a reliable and easy-to-track method of payment, they often take time to process. It’s also possible to make errors with handwritten checks and a lack of electronic paper trail.

Cash

The least reliable and most cumbersome method of B2B payments is cash. Not only is it difficult to keep track of, once they exceed a few hundred dollars, large cash payments have significant regulations.

Payment Gateways

The most popular B2B payment solution is payment gateways. They facilitate your business’ financial transactions and make subscription and one-time payments seamless. Whether payment gateways, subscription management platforms or revenue recognition, there are many companies that provide different B2B payment services.