B2B Payments

According to the BI Intelligence report, despite reaching approximately $18.5 trillion in volume and vastly outpacing B2C and C2C, B2B payment processing still lacks the level of innovation found in the previous two realms. In large part, this is due to the complex nature of B2B payment processing that forces merchants to use analog as opposed to digital tools.

But what makes it so complicated? Let’s look at the typical stages a B2B payment has to go through before it’s complete. For this example, we’ll look at a typical transaction conducted between a store and its supplier: 1. The store submits an order to the supplier. 2. The supplier receives the order and generates an invoice. 3. The store gets in touch with the supplier to verify the details of the invoice. 4. If the invoice is accepted, then the store sends a check to the supplier. If the invoice is declined, however, the process has to start all over again. 5. The delivered check is submitted to the bank.

The actual stages of the process may seem rather straightforward, but the true complexity of B2B credit card processing lies in its timeline and methods. Between invoice generation, subsequent confirmation and the payment processing itself, it can take anywhere from one to three months, which also depends on the acceptance or decline of the invoice.

The methods used aren’t really helping to speed things up either. Although some elements of B2B payment processing have experienced partial innovation, it only made the process more fragmented by forcing analog and digital elements to coexist in the same ecosystem, which in itself is problematic.

In order to streamline the entire process, each step needs to be digitalized. Although there are solutions available that can help accomplish this goal, many of them are simply unaffordable for small and medium-sized businesses. Considering that these businesses make up the backbone of the U.S. economy, this unfortunate fact alone could be responsible for B2B credit card processing falling behind its B2B and C2C counterparts.

Good news is that fast and simple doesn’t always have to be expensive — see if our B2B credit card processing solutions are right for your business.

B2B Payment Processing: How Are B2B Transactions Different?

The complexities of business and corporate payment processing are much different than consumer credit card processing. Let’s take a look at some of the areas that make B2B payment processing different, but also more secure.

Depending on the amount, type of cards and specific information required to successfully run a transaction, credit card processing is assigned to one of the three levels. B2B credit card processing typically falls into either level 2 or level 3 credit card processing, while consumer credit card processing is grouped into level 1. The main difference is the amount of information collected at the time of transaction.

Level 2 Credit Card Transactions

To process B2B credit card transactions at level 2, you could be asked to submit any or all of the following pieces of information:

  • Credit Card Number
  • Expiration Date
  • Billing Address
  • Zip Code
  • Invoice Number
  • Customer Code (also known as a purchase order number)
  • Sales Tax

Level 3 Credit Card Transactions

The entries required for B2B payment processing at level 3 include items from the previous two levels combined with additional, more granular information. Here are some examples of what you can expect:

  • Transaction Amount
  • Date
  • Tax Amount
  • Customer Code (also known as a purchase order number)
  • Zip Code
  • Merchant Minority Code
  • Merchant State Code
  • Ship From Postal Code
  • Destination Postal Code
  • Invoice Number

Make the Move Today to a Better Experience

We can help provide clarity and options for your B2B Payment Processing needs.

What Is the Difference Between a Terminal and a POS (Point-of-Sale) System?

A terminal is a stand-alone device that communicates securely with TransNational Payments, a merchant services provider, enabling you to process credit card transactions through your merchant services account. POS systems often have a terminal built in to support B2B payment processing, but offer additional features such as menus, sales reporting and analytics, customer management, employee management and inventory management.

Read more about POS systems.

What Is the Difference Between a Virtual Terminal and a Payment Gateway?

payment gateway links a system used by a business for the purposes of B2B payment processing (like a POS or shopping cart) to a credit card processor.

A virtual terminal is a way for business owners to process transactions on their own via the internet. In addition, virtual terminals provide business owners the ability to refund and void transactions, as well as, manage reports, analytics and customer databases. A payment gateway can have a virtual terminal built into it and vice versa.

For more information on online payment processing, click here.

Make the Move Today to a Better Experience

We can help provide clarity and options for your B2B Payment Processing needs.

What is PCI Compliance?

PCI compliance is a voluntary measure you can take to ensure that your account and your customers’ information is protected from attack by fraudsters, hackers or other malicious parties. TransNational Payments can assist you in becoming PCI compliant to ensure you are covering all of your bases – do not open your business or your B2B payment processing up to threats.

Enjoy a Better B2B Payment Processing Experience

TransNational Payments
9550 W. Higgins Road • 8th Floor • Rosemont, IL 60018
Tel: 888.998.6224 

TransNational Payments is a registered ISO of BMO Harris Bank NA and Wells Fargo Bank N.A.,
Walnut Creek, CA