B2B Payment Services Smoothen The Businesses Transaction
In today’s time, businesses are looking for more convenient and secure means of payment processing solution. Most of the businesses-to-business payments are still made through checks. If we talk in figures, more than 51% of B2B payments are still done through old and inconvenient means of a paper check. But with the advance in the financial technology and payment industry, businesses are opting for the new digital payment solution. It is more secure and fast means of payment processing. Merchants understand that to keep their business thriving; they need robust and reliable processing to handle their company’s transaction better. To struggle less and receive more, merchants require a B2B Payment Services that better fulfil their business requirement. Stay connected to speed up your business transaction and accept payments seamlessly.
How Merchants Get Started With B2B Payment Services
There are several ways businesses can send and receive payments digitally. We, in this article, discuss the most used payment methods for Businesses to business transactions.
- Credit Card Processing: Credit card processing is always the most convenient way of transaction. Merchants widely use credit card processing from retail to an online eCommerce store. When it comes to B2B payments, it proves to be a reliable payment method. Credit card processor deducts a small fraction of the amount with each transaction. The small fraction of the amount is the processing fees, which is associated with each transaction. When the business transaction is significant, these low fees compounded and became too expensive for small merchants. Processing fees are somewhere is the demerit of card processing solution. Some card processors also have the maximum transaction limit, which sometimes hurts the merchants when they need to do a more significant transaction.
- Payment Gateway: The payment gateway can be an excellent option to accept payment online. If you are a merchant having your online website, then you can easily integrate a payment gateway solution onto your website. A payment gateway is an online eCommerce service that authorizes the online transaction and facilitates the flow of transactional data. It also helps to collect a one-time payment as well as recurring payments scheduled monthly or as per the agreement between businesses.
- Electronic Checks: EChecks replace physical checks. Businesses are using eChecks for B2B payments. eCheck uses the ACH network to get processed. The amount flows directly from the payer account to the payee account. It is also the safest and reliable means of payment processing for B2B businesses.
- Wire Transfer: Wire transfer is an electronic means of payment transfer. The funds get transferred from one business account to another business account. The delivery of payments is within hours. The advantage of a wire transfer is that there is no transaction limit. A business can send and receive as much amount as they can.
ACH Works Well For B2B Payments
There is no surprise that ACH payments are the widely used payment instrument for B2B transactions. In 2017, more than 34% of the B2B transactions were made through ACH as per the report of the finance professional. This is an increase of 22% in 2014. If we talk about the survey conducted by NACHA (National Automated Clearing House Association) and the Credit Research Foundation (CRF), they found that check payments have decreased to 50% as of 2017. This was a major decline compared to 2014 when more than 63 % of payments were done through check. It has been anticipated that the ACH payments will increase from 34% to 45% by 2020. Therefore ACH payment processing is a good option for merchants looking for B2B payment services.