B2B Transactions Are Different From Traditional Payment Methods
B2B companies are adopting digital payment services to streamline their business operation. It has been seen over the last few years that B2B companies are changing the way of the transaction they used to do it before. Usually in B2B transactions works on traditional payment methods like cash or check. But now they are changing their preferences and started shifting towards the digital world. The B2B payment gateway is one of the most preferred solutions for transactions among businesses. B2B transactions involve two businesses, but one of the businesses acts as the customer of the other. The B2B transaction can include anything from the software and services, or office supplies or hardware units required for the manufacturing of products.
What To Look In B2B Payment Gateway
A payment gateway is an online eCommerce service that helps to accept credit/debit card payments. It integrates with your eCommerce website and enhances the capabilities of the online store. A payment gateway securely transmits and authorizes the transactions.
While looking for a payment gateway, a merchant should ensure that it has multi-capabilities to adapt most of the needs of the merchant as well as customers. Make sure that your payment gateway processes ACH payments as well as accept all the major cards. It should be scalable and can accept and exchange foreign currency. Payment gateways come with a lot more capabilities like invoicing, report generation and real-time transaction tracking.
How Does A B2B Payment Gateway Work
A payment gateway helps merchants to accept payments in several ways. Likewise, it helps to accept ACH payments or card payments through mobile, email or fax. A virtual terminal is an additional feature of the B2B payment gateway that enables businesses to accept payments from any geographical location. It only requires a web browser and an active internet connection to accept payments from any business entity. The crucial role of the payment gateway is to encrypt the card details provided by the customers. It acts as an intermediary between your eCommerce site and payment processor or banks. Thus it streamlines the transactional data flow between the financial institution and helps in secure payment settlement.
Benefits Of B2B Payment Gateway
- A lot of time and effort can be saved with online B2B payment gateway processing. Traditional methods like cash and checks involve a lot of physical works as well as trips to banks. With the gateway solution, the transaction is just a click away.
- Businesses feel more confident to transact because payment gateway provides features like fraud prevention and Seller protection features. It eliminates the risk and builds the truth.
- The payment processing is faster and hassle-free. All the funds go into the merchant account, and after the holding period, it gets transferred into the bank accounts of the business entity who is receiving payments.
- Provide easy tracking of payments as well as goods and services.
- Account reconciliation process and report generation capabilities.
- Supports customer disputes to build customer trust.
- Recurring billing solutions and lump-sum payments make the transaction process smooth and adaptive to the needs of the customer.
- Some of the payments gateways also provide you with the facility of mobile payment solution, which attracts more customers.