Digital payment solutions have revolutionized the way consumers handle their finances. Businesses are starting to benefit from digital payment solutions as well.
In order to select a digital payment processing company that can effectively meet your needs, you must understand the characteristics that set B2B payments apart from traditional consumer payments.
1. Value
One of the major differences between B2B and consumer payments is the value of these payments.
The payments that are sent from one business to another tend to have a higher monetary value. This means that you will need to find a payment solution that allows for a high individual transaction value in order to meet your company's payment needs over time.
2. Frequency
Consumer transactions are usually few and far between. A consumer will only make a payment when reimbursing a friend or making a purchase. Businesses tend to make many payments on a daily basis.
The best digital payment solution for your business will be able to accommodate the high payment frequency associated with B2B transactions.
3. Regulations
Many of the payments that are made between businesses are governed by industry regulations. The specific industry in which your company operates may dictate that your B2B payments be handled carefully.
Digital payment companies that specialize in B2B accounts are able to monitor your transactions and complete all payments in compliance with your unique industry regulations.
4. Preparers
When a consumer makes a payment, only the consumer is involved. Payments that come through a business must be prepared by a team of individuals. A request for payment is submitted, reviewed by an accounts payable department, and then a check is cut by an accounting department.
Digital payment solutions designed for businesses must be able to track payments throughout each of these stops. You want to select a payment processor that offers a user-friendly interface and remote access for your employees.
5. Delays
Another key difference between consumer payments and B2B payments is the time frame in which payments are made. Consumers make payments as soon as a request for money is received.
Businesses often have a billing cycle that governs their payment schedule. These billing cycles can vary in length, which means B2B payments may not be sent until a few months after a request for money is received.
The digital payment solution you choose to handle your B2B payments should be flexible enough to work around your company's existing billing cycle.
Contact a local B2B payment company to learn more about your options.
