B2B payment is a crucial stage in B2B selling and buying activities. While B2B payment includes the transactions among businesses, it is more complicated than paying money as normal. That is why the sellers need to take a deep look into the B2B payment systems, to help them enhance their stores’ payment procedure as well as avoid common mistakes.
Facts About B2B Payment
Definition And Types Of B2B Payment
B2B payment happens when one business pays money to another business to exchange for goods and services. It can be one-time or annual that may stick to the terms and conditions in purchase and sell contracts.
There are a variety of payment methods in today’s eCommerce marketplace. Some of the popular ones are paper checks, ACH payments, wire transfers, credit cards, digital wallets and cash.
B2B Payment Problems
For example, cash payment may cause a little difficulty in establishing a statement. Also, the electronic devices can not calculate and develop methods of statistics with cash payment, so manual operation must be required in this case.
Some of the payment forms have an expensive transferring fee, too much time to respond and mistakes when running that can reduce the effectiveness of B2B transactions and even cause considerable loss.
B2B Payment Trends
Trend Mades By The Pandemic
The Covid-19 pandemic has moved the B2B payment world to digitalization. The sellers and buyers come to the digital platforms for transactions with electric invoices. Moreover, the number of cash and paper checks payments has reduced remarkably as they do not have a chance to go to the banks as before.
Also, electronic payments help the business improve the payment stages as the automatic process can save a lot of time and the payment can be done remotely without geography constraints.
One example of an app that can automate necessary steps in the next payment if your store have to conduct the repetitive tasks multiple times per day is Atom8. By having the “capture/void payment” function, it can save your time with order management and reduce refunding tasks. Atom8 is available on two BigCommerce and Shopify platform. You can discover its functions:
New B2B Payment Equipment
Going along with the electric payment expansion, the B2B eCommerce business has tried to add on more and more payment equipment. Also, the integration between different payment gates, for example, bank accounts and digital wallets, will increase the convenience for both customers and sellers. The customers do need to have accounts on all the payment gate and the sellers can total up their revenues to one main account.
Additionally, the transactions costs of new payment methods are pretty cheap or even free, which may boost customers’ motivations to shop and pay in this challenging pandemic context.
Security Becomes Crucial
The threat of financial crimes has become more widespread. The payment fraud not only negatively affects the sellers’ financial sources but also customers’ ones. The security of customers’ accounts and information is also important, so the sellers, when they want to utilize a new payment method, should pay a huge amount of attention to the liability and security levels of new systems.
We have drawn a picture of B2B payment, which contains must-know information for those who are running eCommerce B2B stores. We believe that this ultimate introduction will help you get started to build and develop your outstanding B2B payment stages.