Due to the very nature of how the transactions are conducted, B2B payments are typically tied into eCommerce solutions based on a card-not-present (eCommerce) platform. Let’s take a lumberyard serving building contractors, for example. A contractor would want the ability to have an “open” account with the lumberyard to purchase materials as needed. The contractor would initiate a payment process with the lumberyard to accommodate ongoing and perhaps intermittent purchasing. Purchases would be tallied by the lumberyard’s inventory system and billed to the contractor in a card, not present manner. Payments are made based on a one-time card number acquisition with recurring payments to follow, based on inventory purchased.
Credit card payments eliminate the hassles of paper billing and accepting cash and check payments while lowering operating costs for B2B businesses on both sides of the transaction. While selling businesses benefit from faster receipt of payments and the added convenience of streamlining payments reconciliation and accounting, purchasing businesses can enjoy the cashback and rewards that come with most major credit card offerings these days.
