B2B payments are those payments that are made between two traders for the exchange of goods and services. B2B business has different ways to process their payments i.e. cheques, Wire transfers, Electronic bank Transfers, Payment Gateway etc.
Also, with the digitalization of the world; Digital payments (Payment Gateway) are lagging behind the system of paper cheques and other systems for the payments of B2B transactions. It makes the transaction faster to issue, receive, and process payments, all of which can improve a business’s cash flow.
How B2B Payments Differ From B2C Payments?
In business-to-business (B2B) commerce, a business sells its product or services directly to a different business. While in business-to-consumer (B2C) commerce, a business sells its product or service directly to a customer (End-user of the chain). Since each model has involved different parties, a different payment process is required for different modes. These models differ drastically when it comes to the average price of goods and services, the quantity and frequency of the order, terms of payment, and the simplicity of the process itself.
Ways to Collect B2B Payments
Credit cards
Credit card payments are a unique way to collect payments online for a variety of businesses; these fees can be too expensive.
Some credit cards will also have a maximum transaction limit, which can make it impossible to process greater payments. Therefore, it is not suggested to choose this option for B2B payments.
Bank/Wire Transfers
Bank and wire transfers are proved as secure payments of B2B between financial institutions. These types of payments typically take a lot of efforts to set up, but once completed then are very reliable. While there are fees involved in these kinds of transfers, then there is no limit to the amount that can be sent between banks.
Checks
Checks may feel ancient, but there are businesses that still accept them as payment. While this is encrypted with the security purpose and easy-to-track payment method, checks do take a lot of time & effort to process. There are also more chances for error with handwritten cheques due to poor handwriting and the lack of an electronic paper trail.
Cash
Cash payments are the least trustworthy and least used method for B2B payments. Anything over a few hundred dollars will be difficult to keep track of. Verified with the fact that large cash payments have significant rules & regulations regarding their use, makes this a very inefficient way to make B2B payments.
Payment Gateways
Payment gateways are the most popular way of collecting B2B payments i.e. they facilitate B2B transactions for your business and make it easy to collect payments. While you can still trust a third party to process these payments, the software available to facilitate these payments is built to reduce the effort of the billing process as much as possible.
Thus, for the modern world, you need a best b2b payment portal for your business to stay ahead of your competitors.
What is The Benefit of using Payment Gateway for B2B transactions?
- It improves your cash flow as it makes it easy for your customer to pay you and helping you to receive payments faster.
- It simplifies the bookkeeping of the transactions and reducing the chances of manual errors.
- It is an economical tool as it saves your lots of time and effort.
- It helps to create loyal customers.
- It will make your business unique and special.
- It allows you to connect 24×7; you can receive payments anywhere.
- With the help of a payment solution, you can increase the security for your transaction as payment gateways have a team of data experts to keep your information safe and confidential.
Marg provides you with a one-stop b2b portal solution (MargPay) for your payment-related challenges as this not only makes your B2B payments easier and faster but also makes your reconciliation effortless.
Why You Should Use MargPay for Your B2B Transactions?
MargPay is a b2b portal to promote business payment digitization & automate all the repetitive & time-consuming processes (from invoicing to payment). Thus, it improves the accuracy of your captured data, increasing consistency & reducing the operational expenses.
Let’s consider some of the benefits while choosing MargPay for your payment challenges.
- Schedule Payments
- Automatic Reminders to Customers (Send SMS)
- Effortless & Auto- Reconciliation
- Payment with UPI, Net Banking, Credit/ Debit card, NBFC & Wallet, etc.
- No delay in Collecting and Depositing Payment
- No need to carry Cash
- Avoid Payment Frauds
- Stay Safe, Follow Social DistancingÂ
What Are The Advantages of Using MargPay for B2B Transactions?
Fastest Transaction flow:
- Automate, accelerate & interpret every trait of your payment transaction.
Transparent Process:
- Easy uploading of outstanding on the portal, and get instantly updated status with a seamless & transparent experience
Eliminate Repetitive Work:
- Share outstanding, payments via online portal & directly reconcile payments in account eliminating the repetitive task.
Connected with ERP:
- From billing to balance sheets, get payments/ collections directly into any ERP software & make reconciliation effortless.
B2B Payments can be comprehensive to a great extent by automating the tedious process by using a secure B2B Portal for Payments and Transactions. In order to make truly seamless payment reconciliation, you should go for a payment gateway that is integrated with ERP Software just like MargPay. It will help you cooperate with the daily challenges in making your reconciliation effortless.
