Business to business payments are traditionally collected via check. First, you must send out an invoice, wait for that to come back with a check, and when you have enough checks, or whenever you make a regular check run, you have to make a trip to the bank to deposit the payments. In between these steps you probably generate enough paperwork to bury your secretary. The problem with traditional payment collections is that they take too much time, and if a check bounces then it can further cost you in time and funds.
The future of payment processing truly lies in B2B credit card processing. The benefits are tangible, and immediate.
- Less paperwork.
- Improved cash flow.
Accounting will be so much easier for your business when you move to online credit card payments. All transactions are recorded digitally in detail, and in some cases can automatically be transferred to your software or record keeping system. Taxes and accounting will be virtually paperless when you can easily see online and in your system when payments were made by which vendors, and for how much.
Business to business payments happen faster when you have to wait less on payments going through. Increasing the payment options for your vendors, or storing their credit card information, will make it easier than ever for them to fulfill their payment obligation. By using online payment systems you can get payments in the bank much faster than if you had to process a check.
The only downsides when you move to B2B credit card processing are the payment processing service fees. However, if you pick the right online credit card processing service, you will have very few and very clear fees. Yet, you might have had to pay fees anyway if you were processing checks with a check machine in your own office.
It is important to note that 82% of American Express card users and 79% of people using Visa and MasterCard agree that it is preferable for merchants to offer a variety of payment options. Go ahead and ask your partners and vendors if they would appreciate the ability to pay with their credit cards. Chances are they would, and you can easily move towards that solution, and reap the benefits of B2B credit card processing. References.