B2B Payment Gateway

Most forms of business organizations deal in B2B payments quite prominently. Similar to most other forms of business payments, B2B payments have also donned virtual garb. Companies around the world have expanded their presence to multiple geographical markets through online platforms. Payment gateways have primarily made this expansion a possibility.

The payment gateways act as stout supporters that reinforce the electronic payment ecosystem. If you want to run a B2B venture, especially an e-commerce store, you must understand the fundamentals of the B2B payment processing domain. Learn more about B2B Payments for eCommerce.

What are B2B payments?

B2B payments represent the payment transactions between two business enterprises. Such payment transactions differ from business to customer (B2C) and person to person (P2P) dealings. 

They might be single-time payments or recurring payments as per the contractual terms. Apart from cash, paper checks, wire transfers, credit cards, ACH, mobile pay, and e-wallets are also popular B2B payment methods.  

What is the meaning of a B2B payment gateway?

A payment gateway refers to an intermediary between a seller and his buyer responsible for ensuring the smooth completion of a payment transaction. In a B2B transaction, the payment gateway manages the sensitive details of the entities involved through required security measures. Such B2B payment gateways also safeguard the seller against the risks of closed accounts, expired credit cards, or insufficient balance. Using payment gateways, businesses can collaborate with other providers internationally. They can gain the advantage of electronic wire transfers and cross-border transactions. 

What is the process involved in the operation of a B2B payment gateway?

Typically, the B2B online payments undergo the following mechanism to attain successful completion. The process starts when a buyer venture selects a product from the merchant entity’s website and proceeds for checkout. 

The payment gateway deploys multiple types of payment integration options. These include:

Direct integration

Direct integration, aka server to server integration, refers to the payment processing system with a direct connection between the payment gateway server and the merchant’s server. The direct integration is appropriate for merchants that assimilate and store the buyer’s payment details before sharing them with the payment gateway. Such integration does not require redirecting the buyer to the payment gateway page and allows buying entities to carry out the payment on the merchant’s page itself. This feature permits faster checkouts and will enable the seller to deliver a consistent customer experience. Merchants also have better control over the overall aesthetics and feel of the payment page.   

Encryption-at-source

This technique allows encryption of the buyers’ financial info on their devices themselves before it gets transferred to the merchant’s server. This amenity is also called client-side encryption. Using your B2B payment gateway’s encryption library, you can encrypt sensitive data quickly. Encryption-at-source amenity acts as a great strategy to ensure merchants’ compliance with security regulations. 

Hosted payment page option

 A hosted payment page refers to a payment processing method where the buyer gets redirected to a hosted page for completing the payment. As a result of a hosted page, the merchant does not have to store the client’s financial data on his server. Here, the B2B payment gateway acquires his transaction data securely before sharing it with the acquiring bank. Thus, online merchant ventures have lower stress about the security rules like PCI compliance. 

Now, let us understand the precise procedure in brief that goes during the payment processing phase.  

• Once the purchasers find the payment page, they have various payment methods like credit card payments, ACH payments, or mobile wallets at their disposal. The customer enters their card details or mobile wallet credentials on the payment page. In the case of debit/credit cards, the information covers the card owner’s name, CVV number, and expiry date. As per the integration choice, the B2B payment gateway safely acquires the details. 
• The merchant’s B2B payment gateway usually encrypts the complete customer payment details while verifying them for the possibility of any fraud. Then, the details are shared with the acquiring bank.
• Further, the card companies like Visa or American Express receive information from the acquirer. They undertake additional checks for more surety against illegitimate money transfers. The issuing bank receives the payment details and authorizes the transaction after verification. Notification of payment approval or denial is passed on to the card company to the acquirer. 
• This intimation gets shared with the merchant via the acquirer and his B2B payment gateway. Once the payment is approved, the acquiring entity receives the amount from the issuing client’s bank and holds it in a merchant account. 
• As per the agreed terms between the payment gateway and the merchant, the settlement of the funds takes place. The entire payment processing gets concluded in a span of 3-4 seconds on a real-time basis.

Which points should you consider before choosing a B2B payment gateway for your business?

1. Price structure 

The pricing policy of your B2B payment gateway must fall in your budget and match the level of services offered. No seller wants to let go of a considerable chunk of their earnings in payment processing costs. 

2. Paperwork 

Assess the intensity of paperwork and documentation involved in hiring and operating with the payment gateway. Avoid companies that have cumbersome and lengthy procedures.

3. Security

One of the most vital factors while evaluating your B2B payment gateway is its security strategies. Any misuse of the critical financial data of your clients can result in huge losses. Choose a payment gateway that retains compliance with standards like HIPAA, PCI, SSAE-16, and DSS. 

4. Integration abilities

Go for payment gateways that finely gel with your B2B e-commerce platform. The integration with your online platform should be hassle-free and cost-effective. 

5. Frequency of payouts

The intervals the payment gateway takes to transfer money to your bank account can affect your cash flow. Review the regularity of the fund transfer and whether it is appropriate for your operations.  

 

Collaborate with Beyond Bancard for your B2B payment processing needs!

Did you know? B2B payments involve increasingly complex Level 2 and Level 3 transaction processing. You might need expert assistance to cater to such high-scale processing. Get in touch with Beyond Bancard to find reliable support for your online business!