B2B Virtual Card Payment Solutions
We have all seen the credit card payment industry get revolutionized with automation and technology. Cash and paper checks had their time to shine, but now digital payments are the norm. When you can make a payment with just a tap or click, this is hardly surprising. Contactless and mobile payment systems have opened up an abundance of options for consumers while offering an incredible level of convenience.
It is easy to trace the growth in the B2C payment sector, but what about the B2B payment method? As per a survey in 2020, 64% of the business owners still make most of their payments via check and cash – a payment method that, according to researchers, originated somewhere around 352 BC. Arguably, the evolution has been slow, but things are picking up pace.
It is speculated that the B2B payments market will currently be valued at around $870.42 billion and set to grow to $1.91 trillion by 2028, with annual growth projected at 10.6%.
At CashDiscountProgram.com, our team is all set and well-equipped to be on the better side of the financial services history; the real question is, are you and your business on board?
What is B2B payment processing?
Business to business processing payments (B2B) refers to a transaction between two businesses rather than a business and consumer (B2C). The B2B payment process is slightly more complex than B2C payment systems.
Every time an invoice is generated towards another business, B2B payments are underway.
What are the most popular B2B payment processing solutions?
Most businesses and vendors have preferred payment methods because of acceptability and ease of use. Here are some of the most common B2B payment processing methods:
Cash was once a go-to payment solution between businesses, but the trend is on the decline. As businesses go global and outsourcing and imports become common, your vendor is rarely likely to be based locally. Moreover, no one is comfortable accepting large amounts of cash, whether it is being stolen in transit, mail theft, manual errors of counting, or getting counterfeit notes. Nowadays, big business payments are rarely facilitated via cash.
Paper checks are still reasonably standard as it is quite easy to write an amount on a piece of paper and sign it to the person being paid. It offers convenience without physically moving the money. However, even checks are not without their pitfalls. A check is not an excellent way to receive payments in case of emergencies. After issuing a check, you also need to make sure the money is in your account when the check clears. It is impossible to know when the check will be encashed, and it could disrupt the company’s payment cycle. If the check bounces, you will be charged a transaction fee and late fees as well.
Credit Card Payments
Credit transfers, payment cycles, early payment discounts, transaction fees are some terms that have now become quite common, thanks to credit card companies. With rewards, cashback, extended credit period, at a small monthly fee, a credit or debit card has become the go-to payment method for consumers and businesses. It also allows your customer to defer their payment by at least 30-45 days. Companies can acquire a business credit card with extended limits to carry out big transactions for commercial purposes. Our Cash Discount Program will eliminate all fees that are charged to any business when accepting payment with a credit card.
Western Union, a popular payment provider, introduced wire transfers about a hundred years ago. The wire transfer process has mostly remained the same – you pay the amount you want to send to a Western Union office, and they transfer it to another Western Union branch, where the recipient can receive money.
Real-time payments have since evolved, and with the introduction of SWIFT and electronic bank transfers (EFT), bank accounts are immediately credited, making it one of the fastest methods to process payments. While wire transfer is quite economical for consumer payments, B2B payments are expensive, with international payments adding to more expenses, meaning wire transfers eat into the profit margins.
Automated clearing house (ACH) payments mean transferring funds from one business checking account to another vendor’s bank account. Global ACH payments require paperwork on both ends – the person receiving the payment and the person sending one. This is why it is preferred for recurring payments or to accept installment payments. Recurring payments do not require repeated paperwork.
With this method, money can take up to three days to show up in the bank account. It is also more reasonable than wire transfers.
Digital Payment Options
Digital payment platforms such as PayPal, Payoneer, Skrill, Google Pay, Venmo have emerged as popular payment gateways to facilitate B2B payments and request payment. These can be used to make online payments from one bank account to another. While Google Pay is an online payment platform geared explicitly for mobile payments, others can be accessed via a PC, as well.
However, one downfall is that most payment providers charge exorbitant fees on every transaction, these have become quite popular for cross-border payments for business payments and consumer payments. Accepting payments via credit cards with our Cash Discount Program will eliminate all fees.
While some entrepreneurs may roll their eyes, it is true that cryptocurrency has managed to surge ahead of expectations. Many businesses have started accepting cryptocurrency as payments, and more are considering it. Changes can already be seen at a B2B level, even though B2C has not adopted cryptocurrency on a wider scale yet.
Infamous for its cons, cryptocurrency still suffers from major volatility, unclear regulations around the globe, limited infrastructure has made cryptocurrency less desirable.
How do you send money through B2B payment processing?
In B2B payment processing, a payment gateway and processor are set up to bridge businesses, customers, and their respective banks. For successful payment transactions, here are the following elements required:
- Payment gateway
- Issuer bank (Customer’s bank)
- Acquirer bank (Merchant’s bank)
To understand the payment process, it is essential to understand the difference between payment gateway and processor – yes, they are different. Many times, the terms are used interchangeably because they work in tandem for B2B payment processing.
A payment gateway is a point-of-sale terminal that accepts electronic payments. It is crucial to transmit the data. A payment processor is responsible for secure payments. It verifies the customer payments’ data to ensure that it is not fraudulent.
What are the Key Features of a B2B Payment System?
Every business has different needs, and every software has something different to offer. Choosing a B2B platform will largely depend on what you need it to do for you. However, certain qualities will surely serve every business financially and professionally. First, a B2B platform should help move your business forward and empower you to receive or send payments digitally.
Here are some of the critical features of a B2B payment system that you should look out for:
There are many payment options out there, and all of them need to be recognized by your accounting software, as well. You must have a B2B platform that serves a variety of payment needs. It should be able to grow and accommodate the growth of your business and not need replacement every few months.
Implementation and Integration
This is one of the key aspects of a good B2B platform. If it cannot integrate seamlessly with your existing accounting systems, then it’s useless otherwise and will result in more work rather than lessening your burden. Payments and receipts should be automated to get recorded and should be compatible with your accounts receivables and payables too.
Ask CashDiscountProgram.com about your requirements and how you want the B2B payment solution to help you, and we will help you.
Payments are an integral part of business; that’s how you make your money, and it is important to keep them on track and deploy the perfect software. It is necessary to have a B2B platform that accepts and processes payments as and when they occur to avoid delays in today’s world. Consider a vendor like CashDiscountProgram.com that has top-notch support and is always available to troubleshoot your problems to ensure that there are no bottlenecks in running your business. After-sales services are essential, and our team at CashDiscountProgram.com understands it very well.
Ease of Use
Besides integrating with existing software that your business uses, a good B2B software should not be complicated to use. You do not want to waste time figuring out the user interface when you can easily use that time to accept payments and run your business. There is nothing more frustrating than failing at figuring out technology.
Ask your vendor for training and demonstration to learn the ropes. You can also try to get a trial to get a sense of what you will be using and how it will be affecting your business.
What are the Benefits of a B2B Payment System?
When you adopt a B2B payment system, you will realize that your bookkeeping services have steadily improved while simplifying payment processing. Our payment solutions also help grow your business and expand your reach. In case you remain skeptical, here are some of the key attributes:
Improved Cash Flow
When new businesses are projected to fail within five years, we are not exaggerating when we say that starting a new venture is risky and odds are stacked against you. The most common reason businesses fail is that they fail to manage their finances and have limited cash flow. Rather than depending on checks, closely watching incoming and outgoing cash, automate your B2B payments and manage your operations more effectively.
A B2B processing system also makes it less difficult to pay other businesses. For example, invoice platforms can now clear invoices in a single click through credit cards. It means you clear your dues and receive money much easier and faster.
The biggest downfall of cash and checks is security. When you use our payment solutions, every transaction is safe, fast, and secure, and your information is protected well. While we understand that B2B digital payments are not without their breaches, CashDiscountProgram.com has teamed up with only trusted companies with professionals and data engineers working round the clock to ensure there are no loopholes for anyone to exploit.
Similarly, encrypted information is much harder to crack when compared to the paper trail left by a check or cash.
B2B payments will help simplify your accounting to a major extent. While managing checks and cash could easily lead to manual errors, omission, stealing, misplacement, the B2B payments solution will automatically record payments. Moreover, it will be integrated with your recordkeeping software, which will help you file taxes in a much easier way.
Since the B2B payments solution is designed to solve payment issues, you can also track accounts payables and receivables in real-time. For example, if you dealt with frequent late payments and missed deadlines, you can easily monitor the issue with a simple click and improve your cash recovery cycle. The functionality can help you pinpoint exactly what vendors are defaulting and whether enforcing a stronger policy is the need of the hour.
B2B payment solutions considerably cut processing times, making transactions quite easy. It will free up time for you, and you are free to focus on your core competencies.
With the help of the skilled team of CashDiscountProgram.com, you will use a program that will provide insight and contribute actively towards better reporting. It will help make better management decisions, including cutting expenses wherever possible and capitalizing on discounts.
If you want a further explanation as to what B2B payment processing can do for you, you can contact the helpful team at CashDiscountProgram.com, and we will be happy to answer your queries.
Now that you know how useful the B2B payment processing solutions can be, it is high time to incorporate them into your daily operations. We have clients who have reported amazing results and shared great feedback on how a B2B platform has benefited their business, saving resources and security.
It’s never a good idea to jeopardize your cash flow, especially when you streamline your business operations. Ensure that you have a reliable payment solution in place to keep the payments steady and keep the business running smoothly.
What is the B2B Payment Processing Cycle?
Businesses with accounts payable and accounts receivable teams with billing and invoicing software, invoice financing, and inventory tracking exert the most influence over their B2B payments. However, that also means lots of manual intervention. Here the first step is to initiate the purchase and approve the sale. This is where a purchase/sale order is issued and sent. After the rate and quantity have been decided, an invoice is generated. Nowadays, the entire process has been automated.
Many businesses have now opted to outsource their payments department or completely digitize their payment solutions through payments software, cutting down the time and resources to initiate, follow-up, or process payments.
What is the Difference Between B2B and B2C Payments?
B2B payments are much more complex than B2C ones. As explained above, a B2B payment has to pass through many channels, owing to the hierarchy, number of bills, and the amount involved. Also, some of the B2B payments are recurring in nature.
With B2C transactions, the purchase could be online or in person. Often it is a single bill of lesser value, and the customer is at the checkout process. Money is exchanged at the same time when goods or services are rendered. This is possible since the payment solution is already digitized to authenticate the transaction at a lower cost.
What can CashDiscountProgram.com do for my business?
Why would you want to lose your edge by using obsolete payment solutions in a world where time is money?
Team up with CashDiscountProgram.com; we have created a payment processing solution specifically designed to meet B2B payments requirements. If you do not provide efficient, fast, and secure payment options in the payment industry, you will lose your vendors. It also helps manage your day-to-day operations, stay ahead of the trends, and drive customer loyalty.
We offer hassle-free payment solutions; whether you collect invoices or have set up a recurring billing process, we deliver you easy, timely, fast, and secure processing of payments.
We offer a payment solution that can handle a high volume of transactions. Forget about waiting months to get your money; we make your daily operations more effective by offering a full-service credit card processing solution. Here’s what you get:
- An in-depth report about your customer’s buying and spending patterns.
- Handling international payments with ease and support in multiple currencies.
- Seamless integration with other business management systems.
- Reduce your processing fees to a bare minimum.
- Safe and compliant functioning.
- Lower expenses for you means higher profits.
- Premium and high-class customer service.
- Reliable and fast credit and debit card processing.
- Payment support for multiple POS locations.
- Immediate troubleshooting help.
- Filing taxes is much more convenient and easy as all the information is in one place.
The best part is that when you hand over the headache of B2B payments to us, you and your team will have more time and resources to focus on securing more clients and business. Spending a considerable part of the day creating invoices, mailing, and following up takes more time than you realize. We serve businesses all across America. Contact us to get more information and witness your operation get revolutionized through our B2B payment solutions.