B2B Payment Processing: The Importance of Digitizing Your Services

b2b payment processing

September 14, 2021

Contrary to what its name might suggest, business-to-business payment processing begins before any money is ever actually moved. In fact, B2B payment processing starts the moment a business receives a merchant application. A B2B payment is any transaction between two businesses for goods or services. And, B2B payment processing is how that payment method is processed by a PayFac, ISO, or other payment service provider.

Unfortunately, like everything else in the world (besides working with Agreement Express), B2B payment processing has its challenges. Working as a payment service provider without the right tools to onboard and monitor merchants can lead to an increased risk of fraud, low visibility, and fluctuations in processing time—all of which impede on merchant and employee experience. To mitigate this, more and more companies are beginning to undergo a digital transformation to innovate and optimize their B2B payment processing system. This digitalization is a vital factor to consider as payments continue to evolve in the fintech industry.

Why You Should Digitize B2B Payment Processing

Fortunately, there are ways to reduce a company’s exposure to these downsides of B2B payment processing. To increase the efficiency and efficacy of the payments process, companies can add innovative technology into their toolkit, as digitization is soon to become the gold standard of good business practices. Studies show that by 2022, companies that have a diverse portfolio of IT solutions will deliver business outcomes 25% faster than competitors not using advanced tech solutions. 

Digitizing your B2B payment processing won’t just result in faster outcomes; it will result in better outcomes. Utilizing automated software for your B2B payment processing results in a higher success rate for payments as it increases the security of transactions. Since most software automatically updates to match the newest payment compliance rules, undergoing a digital transformation can guarantee that a payment service provider is conducting payment processes that are safe and secure.

Automated software can also make the process of analyzing merchant applications faster, while diminishing risk. Differences in merchant applications and inconsistent underwriting can slow down the B2B payment process and riddle it with issues. Innovative tech solutions like Agreement Express’s Merchant ScanXpress automates this process, dynamically analyzing merchant applications, letting payment processors know the risk, and getting merchants onboard in as little as one day. This creates a quicker evaluation and approval turnaround, happier merchants, and more business for your company.

Switching your B2B payment processing to a digital platform will also result in a more seamless experience for your client. Ease of use and setup is cited as the number one buying factor merchants take into consideration when choosing platforms. Companies should seek to transform their B2B payment processing, but specifically seek out solutions that are user-friendly to guarantee the best experience for their merchants.

Overall, digitizing your B2B payment processing is a win-win that doesn’t require compromise; your company can onboard and monitor merchants with more clarity and accuracy, at a more reliable and consistent rate. But where should you start? How do you find the perfect software?

How to Digitize Your B2B Payment Processing

Being critical in choosing a digital platform is important. Factors such as user-friendliness, integration capability, speed, and accuracy can make or break your innovation efforts. Payment service providers should seek out software that is highly customizable and dynamic to change and fit their specific needs, while maintaining security.

Agreement Express has software that is revolutionizing the B2B payment process to make it easier, faster, and safer for companies to do business. Agreement Express produces solutions that scale to companies, expediting the merchant application and approval process, in turn allowing businesses to achieve their goals.

The Bottom Line

B2B payment processing is important… and complicated.

Digitizing the process can boost your company’s profits, client satisfaction, and average speed of transaction. Agreement Express has software that is customizable, risk-reducing, and user-friendly, all with the potential to onboard merchants in less than a day. Contact us for a free trial to see how Agreement Express can jumpstart your company’s innovation.

B2B Payment Processing FAQ’s

What’s the difference between B2B payment processing and B2C payment processing?

“B2B” stands for “business to business”, whereas “B2C” stands for “business to customer”. The difference between the function of the two lies in who serves whom; B2B companies mainly do business with other merchants, whereas B2C companies sell directly to consumers and individuals.

Why is B2B payment processing important for PayFacs?

B2B payment processing is important to PayFacs because it characterizes a large portion of the amount of transactions PayFacs facilitate. It is important for PayFacs to digitize B2B payment processing because it is such a large portion of their business; using software mitigates risk and results in better business overall.

How can payment service providers benefit from a digitized merchant application process?

Digitization of the merchant application process generally speeds up the process of onboarding a merchant and thus B2B payment processing, but only Agreement Express’s software is configurable for any business, which makes it uniquely capable to fit the needs of any of the merchants a business works with.