At one time, cash and paper checks dominated the B2B payments world. However, as we have moved into the digital age, a variety of methods have become available. While electronic B2B payments are incredibly convenient, they do present some issues to businesses that choose to adopt them. Fees, security, and, of course, which methods to accept, are all issues that companies need to consider. However, the fact more customers than ever are heavily reliant on mobile and credit card payments means any business that chooses not to use electronic B2B payments is putting itself at a disadvantage in the market.
Electronic B2B payments have not only boosted sales and cash flow, they have improved the chances of businesses receiving payments on time. Yet, for those businesses that still favor the older methods, here is a look at the pros and cons of different payment options and how to find the right one for your company.
Paper Checks – The Traditional Choice
Once the staple method of B2B payment transactions, today there are only a handful of businesses that still choose paper checks to make purchases. Because paper checks are sent in the mail, they can take a long time to clear, although they are a cost-effective solution. Checks can pose risks to businesses because of theft or loss, and with the increase in the number of businesses that are opting for electronic methods, it’s no surprise their use is waning.
ACH Payments – Secure and Reliable
Businesses looking for secure money transfer options prefer ACH payments. One of the largest payment systems in the United States, ACH allows for direct crediting of payments between accounts with excellent security and safety built in. ACH payments also cost less than other payment methods. Payment processing providers, such as BillingTree, offer ACH processing as part of their service for reduced costs and more efficient cash management.
Credit Cards – The Preferred Method
Many businesses are now choosing to use credit cards as their preferred option for buying goods and services. However, there are often higher transaction fees and a restriction to cash flow, as well as the problems of security risks, such as the fear of identity theft. Payment processing providers, such as BillingTree, are able to facilitate the use of credit cards for B2B payments by offering a safe, secure optimized, and PCI-compliant online environment for better revenue management, more convenient integrated processing, and lower costs compared with processing of paper checks.
BillingTree can offer efficient B2B payments solutions that are convenient, cost-effective, and secure, providing a climate for success in today's modern business environment.