According to Forrester, B2B ecommerce sales is expected to reach $1.8 trillion by 2023. But finding the right B2B payment solution for your ecommerce site can be tough. There are so many options available nowadays that the search can get a bit overwhelming. The key is to find a solution that will fit your business in particular, and in that sense, you might not find everything you need in a one-size-fits-all solution. What works for others might not necessarily work on you.
With that, here is a short guide on how to choose the best B2B payment gateway for your ecommerce site.
Flexibility can come in many forms. For one, it can refer to the solution’s support for various B2B e-commerce payment methods. Nowadays, there are many ways to accept payment—from credit/debit card processing, digital wallets, cryptocurrency, bank to bank transfers such as ACH (automated clearing house) and wire, and even checks. By offering a self-serve experience in your ecommerce website, your customers can have the freedom to choose what payment method they want to use during transactions.
Another form of flexibility that you should consider is the solution’s accessibility via mobile devices such as smartphones and tablets. This will allow your clients to complete transactions anytime and anywhere. Examples of businesses that can benefit from such mobility are those involved in transportation or deliveries. This will allow drivers to accept orders and payments while on the go.
Being able to offer flexible payment terms to your customers can by far be the most significant needle mover for both sales and average order value. As recently measured among leaders in b2b ecommerce, companies that offered flexible terms for payment saw sales increase by 17% and average orders climb by 21%.
The heavy lifting, however, is often on the vendor side, in terms of the financial risk taken and the operational overhead involved. Therefore if you’re keen on offering payment terms, opt for a solution that enables that, risk-free, taking on the headache involved, leaving you free and clear.
Payment float refers to payments that are yet to clear as they are being transferred from one bank to another. This process usually takes up time, ranging from a few days to even a few weeks. But thanks to digital payment solutions, you can reduce waiting time and have funds posted immediately. Others, like instant ACH, even offer real-time money transfer.
Hence, this is one thing you must consider when choosing a payment solution for your B2B ecommerce. You would want to make sure that it has a short payment float so that you can complete transactions faster and move on to the next. You can check out this article to find out more about how B2B payments in 2021 are changing the way they process payments.
B2B payment transactions often undergo additional processes before completion. This makes it a more complex process compared to P2P (person to person) and B2C (business to consumer) transactions.
Through B2B payment solutions, you have access to automation tools that can simplify the payment process and make it more efficient. You can also integrate it within your ecommerce website to better streamline transactions with your clients. You can also use automated payment methods such as digital wallets and ACH to avoid complicated payment processing.
A lot of B2B payment systems in e-commerce have hidden charges or fees per transaction. If you aren’t too careful, you can end up losing money more than you should. Hence, you should keep an eye out on how much these solutions charge for payment processing before committing to it.
Watch out for unethical billing practices by going over the terms and conditions of each service provider. Look for those that provide consistent billing statements and transparent calculations to show a breakdown of their fees. Sometimes, these charges are unavoidable. Nonetheless, you should check out the different rates they offer for each payment method to see if they are reasonably priced. For example, processing credit cards online can cost higher since it is more vulnerable to frauds. Take your time to go through these product charges and compare it with other payment solutions.
Security has always been a major concern for the B2B payments industry. Hence, you should always prioritize data security and privacy when searching for the best payment solution for your business. This way, you can protect both your business and your clients.
To minimize risks, you consider getting a payment solution that provides data encryption. With encryption, hackers, scammers, and fraudsters can’t easily steal your customers’ payment details and personal information. You would also want a payment solution that provides frequent updates and patches so that your solution always has the latest security infrastructure.
And if you want to further strengthen your system’s security and privacy, consider hiring or partnering with IT experts who can help monitor and maintain your payment processing solution. For instance, someone with an information systems career can easily detect potential vulnerabilities deep within your system and safeguard your organization from such threats.
Searching for the best B2B payment solution can be a complex task. After all, every business has its own unique set of demands and needs. What works for one might not even work on the other. You should focus instead on finding the right B2B payment solution for your ecommerce site.
With so many to choose from, you might find yourself overwhelmed. Hence, you should keep these features in mind to help narrow down your list. Most importantly, take your time in reviewing what these payment solutions have to offer. To start, you can check out Balance.
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Getting paid successfully is the ultimate goal of every business. Here's a VERY detailed guide about how to accept business payments in 2021.
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