10 Feb The Cost of Getting Left Behind: Accepting Business to Business Credit Card Payments
Business to Business Credit Card Payments
In the business-to-consumer world, credit card acceptance has become a necessity. However, in business-to-business sales, credit card acceptance is still something many companies struggle with, due to the cost involved. Many companies are still unsure whether accepting business to business credit card payments is the right move. There are a few things to consider.
Benefits of Accepting Credit Cards
First, we look at the benefits of accepting credit cards. For this discussion, we will focus more on the B2B (business-to-business) credit card sales. However, the majority of this information is also applicable to those accepting consumer cards for B2C (business-to-consumer) sales as well. The four main benefits of accepting cards from your customers are speed, security, automation, and customer satisfaction.
Credit cards allow increased cash flow for the business over waiting for a check to clear or wire transfer to go through. Customers on net terms are often more likely to sit on the invoice to optimize their days payable outstanding (DPO). However, accepting credit cards as a payment method allows for the customer to pay their invoice, reap the benefits of their card rewards program, continue to optimize their DPO by deferring the payment to their card provider, and in turn cut down on your business’ days sales outstanding (DSO).
Credit card payments are also more secure than checks. Encryption and tokenization allows for a secure transfer of information and some portals even offer customer facing platforms. This means the full card number is never seen by the organization being paid. This instills more confidence in the customer that their money is secure, and reduces risk for the organization accepting the payment.
Credit card acceptance allows for more automated accounting, which can be a huge benefit to the business. With a virtual terminal or online portal, there is no longer a need for paper-based invoice processing and delivery, and it cuts down on man hours used to re-key information that has been mailed or emailed. Even more helpful is the fact that data is captured as to who took the payment, the time it was collected, date, amount, and for which customer, which can greatly reduce errors and help with accounting management.
Lastly, credit card acceptance will improve customer satisfaction by allowing them to pay their balance on their terms in addition to increasing usage perks. Companies that do not accept credit cards run the risk of appearing antiquated. Credit cards are a convenient and secure way to pay, especially from a customer’s perspective and businesses may ultimately lose customers to competitors that can process cards.
Finding the Right B2B Credit Card Processing Partner
The benefits of accepting cards are numerous, but what about the cost? According to a survey by First Annapolis Consulting, 67% of suppliers noted that high credit card acceptance fees are the main reason they resist accepting credit cards. However, there are many steps that can be taken to reduce the cost and this starts with finding the right provider. It seems that there are endless merchant services companies out there vying for everyone’s business. Many businesses receive multiple calls a week with the promise of savings and the best customer service. Often, merchants will partner with their banks out of convenience. Merchants will often partner with a provider that is not well-versed in B2B card acceptance or providers that do not custom tailor a solution for every merchant. There is no “one size fits all” in credit card processing, and you should be wary of processors that are willing to offer you a rate without thoroughly reviewing your program first.
A significant cost of accepting B2B/B2C payments is the inability to capture Level II and III data. If you partner with a processor that can capture this information it can decrease your cost by as much as 1%. However, many processors do not have the ability to capture Level III data or they do they do not automate the process for their customers. If the process is not automated, you may have to manually enter nonsensical data for each transaction.
You shouldn’t have to know every aspect of credit card processing to get a fair price. It is your processing partner’s job to get you the best price available. Mandatory contracts, setup fees, hidden costs and equipment leases are all areas your processor should be willing to discuss with you. If it seems like they are trying to hide something they probably are. You might want to seek out a second opinion.
In the end, the businesses that feel accepting credit cards is too costly, especially in the B2B realm, are most likely not set up properly. If you partner with a provider that will custom-fit a solution for you in order to optimize your acceptance, you will see that you cannot afford to not take card payments in this market.
BASYS Processing as a credit card processor and business partner
If your current credit card processor isn’t satisfying your needs for support, pricing, and helping your business grow, please call BASYS Processing at (800) 386-0711. Let’s talk about creating a true business partnership that will help you meet and exceed your goals for your business.
BASYS Processing features:
– Live operator when you call support – no automated voice systems
– Dedicated Relationship Manager for questions and concerns
– Quick response time for your questions and concerns; you are a priority
– Family owned since our founding in 2002
– A+ BBB rating
– 90% + Customer Retention Rate
– Proactive contact with every merchant to walk through the annual PCI process
– In-house PCI Team to assist with questions and concerns
– Solutions including terminals, virtual terminals, e-commerce, mobile, and point of sale
– EMV compliant products
– Reporting for customer, sales, and inventory management
– Gift and loyalty card programs
– Easy-to-read statements
– Transparent pricing
– Tremendous savings
About BASYS Processing
BASYS Processing provides credit card and debit card processing services, and solutions that include terminals, virtual terminals, e-commerce, mobile, and point-of-sale; customized to fit any need. Banks, associations, and software partners depend on us to strengthen their reputations and relationships with their customers by providing remarkable service paired with ultimate flexibility and pricing. Merchants depend on us to make accepting credit cards and debit cards convenient, safe & affordable. BASYS was founded in 2002 on one philosophy: to take care of our merchants, partners, and employees so they never want to leave. We are dedicated to working one-on-one with our customers to design the perfect solution. BASYS is Personalized Payment Processing.
Learn more at basyspro.com, and connect with us online at: