In commerce, there are two main subdivisions of transactions. They’re B2C transactions, also known as business to customer, and B2B transactions, also known as business to business. There are a lot of similarities in how the two transactions function, with a lot of the same payment technology being used. Below, you will find tips and advice on What You Should Know About B2B Transactions.
However, there are still specific considerations necessary for anyone who’s going to be dealing with large numbers of B2B transactions going forward. Without taking the proper time to think these through, you might end up paying significantly more than you should at the end of the day.
Will you be accepting credit cards?
Compared to B2C transactions, some level of convenience can be sacrificed in B2B transactions since typically, larger volumes of products are being shipped, and there’s less worry about the receiving business going elsewhere for a simple service.
That means it isn’t always imperative to have credit cards as a payment option, as payment gateways do take a percentage fee from any credit card transaction they process.
Still, B2B payment solutions for e-commerce do sometimes benefit from the ease and simplicity of credit card payments, especially when selling things over international borders. Carefully decide whether or not you’ll be accepting credit cards before moving forward.
More security is necessary
Word travels fast in the corporate world, especially the word of improper conduct from one business. If your payment gateways aren’t secure, a single data breach can sink your reputation as a business.
Any B2B business should strive to be PCI-compliant, if not above and beyond those compliance levels. Should card information be stolen by a third party and used to defraud that business, you’ll bear the brunt of the responsibility. There’s usually a lot of money on the table in B2B transactions. Make sure it’s secure!
Understand the fees
There are some aspects of using a payment gateway that is less than ideal if you don’t look into them. Take accepting paper checks, for instance. It might seem like the only downside is having to wait for it to come in the mail, right?
Well, actually, fees can be applied to paper checks for everything, from the paper and stamps, used, postage, to even the ink used to print out the check. For this reason, paper checks should be avoided entirely.
Also, you should understand what percentage is being taken off of each transaction, as well as any hidden fees for things like processing refunds or voiding transactions.
There are definitely more similarities than differences when it comes to B2C vs. B2B transactions, yet they still aren’t quite exactly the same. The relationship shared between two businesses is much different than a relationship shared between a business and a one-off customer.
B2B transactions focus much more on being personable and reliable in the effort to make a good impression on other businesses. When it comes to having repeat customers, things like increased security and knowing exactly where you’re losing money in fees is a massive undertaking.
As long as you pick the right payment gateway for you when considering these facts, you’ll have a lot more money in your account and a lot more hair on the top of your head.