Speed, Safety, and Reliability!
Aren’t these the most important aspects to look for when you’re choosing a B2B payment option?
But that’s not enough for choosing a B2B payment method. You need to look for a payment option that best suits the needs of your buyers and suppliers. Thus, you’d be able to process transactions without any trouble.
Sometimes, you need to use multiple modes of payment to provide a satisfactory experience to your buyers and suppliers. Without any doubt, digital payment options are taking over the industry. Still, there are many businesses that rely on old modes of the transaction to avoid scams and frauds
Before we move further, we assume that you’re aware of What B2B Payments are and how they work. A B2B payment is basically a transaction between two businesses for goods or services. Don’t forget to check our recent article where we shared details of What are B2B Payments and how they work. Learn more about B2B Payments.
Types of B2B Payments
Monetary compensation acts as a critical factor before we consider any professional opportunity. If you hold the right skill set to promote and sell products, working as an ISO agent can prove as a golden chance. This job position has the possibility of an almost unlimited earnings stream. ISOs generate earnings in the form of residuals that represent a portion of the credit card processing fees charged to the merchant. Hence, for every merchant business, you land you can expect recurring payment throughout. The good thing is that your client portfolio expands your earning scope manifolds.
1. Credit Card
A credit card is the most convenient and inexpensive way of processing payments.
Keeping a track of your payments is one of the most complicated parts of running a business. You’re surrounded by so many responsibilities that you often forget to record certain transactions.
Fortunately, credit cards eliminate this problem allowing you to print a statement by the end of the month. Many businesses choose credit cards for B2B payments so they may use extra funds in case of emergency. But we don’t recommend exceeding the limits because interest rates are pretty high if you fail to return the amount on time.
Based on our experience, the credit card is the ideal option for merchant services if you start using it as a debit card. You may be worried about Fraudulent activities associated with credit card processing. Well, you can avoid this problem by using a one-time-use number provided by credit card issuers.
And don’t worry about the monthly statement because these numbers are directly connected to your regular credit card number. So, you’d still be able to access your statement by the end of the month.
2. Wire Transfers
If you’re running an eCommerce business, wire transfers can be one of your top priorities. It’s a secure and efficient way of processing payments within a short span of time. Many businesses are now using this mode of transaction for online payments as it eliminates the cut-off times to some extent.
Whether it’s a local or international sale, the Wire Transfer is one of the fastest options for payment processing. Now, wire transfers are further divided into two major categories recognizes as cash and digital wire transfers.
Digital wire transfers are more convenient than their counterparts because you can easily send or receive payments without having to visit your local bank or cash office. On the contrary, cash-based wire transfers require some effort as you’re supposed to visit a cash office to send or receive funds.
3. Paper Checks
You might be surprised to know that some businesses still use paper check to pay other businesses. But it’s a fact and you need to respect their concerns while entering the business world.
Many young business owners prefer using digital payment systems because they prefer speed over safety. But some business owners believe that paper checks are safer than other B2B payments. Another important reason for using paper checks is that they help with keeping a track of cash flow and inventory quite effectively.
4. Digital Payment Platforms
How can we forget the digital payment platforms in this modern era? Paypal, Skrill, and Google Pay are some of the most popular platforms that have completely changed the dynamics of B2B Payments.
By just pressing a few keys, you can send and receive payments instantly. The best part is that you don’t need to pay higher transaction fee at all. These digital payment platforms are available in most parts of the world. Thus, you won’t face any problem collaborating with businesses worldwide.
5. ACH Payments
ACH (Automated Clearing House) is a secure and cost-effective option for B2B transaction. This payment method is somehow similar to the digital payment options because the amount is electronically transferred from one entity to the other. The interesting thing about ACH payments is that they can be integrated into a company’s enterprise resource planning system.
The only problem with this payment option is that it’s only available for businesses operating within America. Similarly, the daily cut-off times may also cause trouble in some cases.
B2B payments are quite sensitive and you need to be really careful about them. You need to adopt the B2B Payment options that are commonly used in your industry. We’ve highlighted the advantages and disadvantages of B2B payments businesses use in most parts of the world. If you need more information about these B2B payment options, feel free to get in touch with our professional team. Beyond Bancard offers more than one solution for B2B Payment Solutions.
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