How are B2B Payments Different from B2C?
A business-to-business sale may be a one-off purchase or recurring payments. B2B payments have many challenges that don’t affect B2C Processing. First, the volume of the B2B payments industry is much higher than B2C Transactions. Next, businesses deal more frequently with contracts, which means recurring payments and invoices. Third, Payment delays can negatively affect a small to mid-sized business. And finally, each B2B payment itself passes through a lot more hands during that payment cycle, including accounts receivable and accounts payable.
For B2C businesses, Level 1 digital credit card processing is the most common level, and it is more than sufficient for most. However, for B2B operations, depending on the types of cards you accept, the quantity being processed and the amount of information needed to be gathered to secure the transactions, higher processing levels may be required.
You can lower your interchange by a little over 1% on commercial credit card transactions.
Level 2 and 3 transactions are processed faster, meaning there’s less of a time delay between when you make a sale and when you get paid
Extra data isn’t the only thing you need in order to qualify your businesses for Level 2 or 3 processing. You also need a payment gateway to authorize online transactions
Level 3 processing can give you more control over your business by tracking things like the size of each purchase, who is allowed to process transactions and how often your card can be used, as well as notifying you of any suspicious transactions
Beyond Bancard will provide the right payment gateway for you to process Level 2 and Level 3 Transactions, saving you money in the process
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