An Overview – B2B Payment Solution
B2B or business to business is a deal between two businesses. The deal can be between any business like the manufacturer to the wholesaler or between the wholesaler to a retailer. And when it comes to B2B Payment solutions, it means a transaction between two businesses. The B2B transactions are most common in the supply chain model in which one business depends on others, and the other is dependent on another.
In contrast, there are transactions between entities like business to consumer B2C in which P2P is the most common method of transaction. Though one business depends on others, they need a robust B2B payment solution. However, still, the innovation in B2B payment processing is somewhere lag behind as compared to business to consumer payment processing. Checks payment are still in existence in a B2B transaction. But now, checks payments are being replaced by ACH. In a report by the Association for Financial Professionals (AFP), there is a huge decline in check payments. As per the report, there were 51% transactions made by checks which decreased by 42% in 2019.
So why are you behind? Take your business with the era of online B2B payment solutions. We at Quadrapay help businesses with a robust, reliable and secure payment solution. Stay Connected!
Online B2B Payment Processing Solutions
There are many alternative payment methods to send or receive B2B payments. The solution may depend on the business requirements and needs. Let’s see the most common payment methods a B2B rely on:
- Check: Checks are not the online means of payment processing solution, but still used in B2B transactions. Almost one-third of the B2B payments are still being made by checks, but the number is decreasing rapidly now. Business is adopting online payment services.
- ACH: Automated Clearing House is somewhat like a digital check which is processed through ACH network. The transaction is processed usually in batches. NACHA reported 1.92 billion B2B ACH payments in the second quarter in 2019, with a value of $18.2 trillion. Those figures are up 10.6% and 6.9% respectively from the same time a year ago. But since Same Day ACH payments arrived it shows tremendous growth in the second quarter of 2019. The 23.6 million payments represent a 54% jump from the same time in 2018. And the $38.6 billion transferred is up nearly 47% from a year earlier.
- B2B Credit Card Processing: A merchant can pay with a credit card to another merchant through B2B credit card solution. The transactional rate is usually higher than that of ACH.
- Wire Transfer: A wire transfer is an electronic fund transfer which is used to transfer funds from one bank account to another account electronically. It usually takes a few hours to get processed.
- Payment Gateway: A payment gateway integrates with your online website and helps other businesses to pay directly via your website’s check-out page. The payment gateway authorizes the transaction and helps in fund settlement in your merchant bank account.
Reasons Why Small Business Needs a B2B Payment Processing Solution
If you are business involving B2B payments, and unwillingness to continue with cash, then you might be interested in knowing the benefits of Online B2B Payment Processing.
- Cash Flow: With the online B2B payment solution, you ultimately feel an increase in cash flow. Other businesses can pay you with a single click. You don’t have to mail every-time for the payment date and the business who has to pay you will not make a check and all that paper-based method. With invoicing capabilities, all your tasks will become so easy and smooth and result in better receivable and payable.
- Time Efficient: The traditional check based method is the very time taken and usually eats up a lot of your precious time. Earlier, Traditional Check based is challenging for both the parties but the new era of payment solution makes the transaction just a click away. This helps both the businesses to work on their core product.
- Adhere With security: with the digitalization, many cyber threats or data breaches also come in play. But there is nothing to worry; the solution is compliant with PCI-DSS standards. Nowadays, many payment solutions come with an extra layer of security called 3D secure, which helps you to protect in the online world. There is also a top-notch security or engineers team who monitors all the transactions and helps you with data security which lets you secure and safe.
- Faster Payment Settlement: with the invoicing feature, you can receive or pay money easily, and the money gets settled into the account within 24 hrs. The sooner you pay the bills, the sooner you receive the project. It also reduces the production time and increases the cash flow.
- Reduce paperwork: with the increase in online B2B payment solutions, there is less use of checks and hence less paperwork. You don’t need to every time deal with invoice and paper reports; everything is automated from invoice to reports. It not only saves paper but the environment.
Future Of B2B Payments
The checks payment is on the verge of extinction in the near future. Everything is going to digitalize. Businesses are adopting various online payment solutions like credit card processing, ACH, eCheck, wire transfer, Electronic Fund Transfer(EFT) and there are a lot more payment instruments. Businesses can send money in real-time. There will be no time boundaries. Cross border transactions will also be done in real-time. All the business will be driven by technology in the financial world. Be ready to enter the world of digitalization.
Apply Today with Quadrapay and Shake Hands Towards The World Of Digitisation
We help businesses with merchant services which let them accept payments online. We not only help Business to Consumer but also Business to Business payment solutions.
If you are a business entity looking for a reliable, robust and secure payment option, Apply Today!
We being itself a business entity, we know which business/industry requires what solution. We will meet all your expectations. To get started, fill the pre-approval form onto our site, and we will analyze your business needs and get back to you shortly.
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