The Best B2B Payment Processing: Everything You Should Know About B2B Payments

Get Started With Dharma Merchant Services

Total Rating	5.0
Fees & Rates5.0 Pricing 5.0 Affordability 5.0
Products & Services5.0
Contract5.0 Commitment 5.0 ETF & Other Fees 5.0
Sales & Advertising Transparency5.0 Sales Practices 5.0 Web Presence 5.0
Customer Service4.8
User Reviews4.5

Pros

Discounted pricing for B2B companies & nonprofits
ACH processing
Additional discounts for businesses processing over $100K/month

Cons

Not cost-effective for businesses processing under $10K/month
Not for international B2B merchants
$49 account closure fee

Why Dharma Merchant Services Is Great For Nonprofits

With month-to-month billing and a history of ethical business practices, Dharma has long been one of Merchant Maverick's favorite merchant account providers.

We chose Dharma Merchant Services as one of our top B2B payment processing services due to its considerable pricing discounts for nonprofit organizations and its strong value proposition for small to medium-sized businesses more generally.

Dharma's services and pricing structure make it great not just for nonprofits but also for companies taking US B2B payments domestically and who process over $10K/month. Sadly, Dharma doesn't handle international money transfers.

Dharma Merchant Services Features

Dharma pairs its ethics and transparency with a strong feature lineup for businesses and nonprofits.

Full-service merchant accounts through Fiserv or TSYS
MX Merchant integrated payment platform
MX B2B app for B2B processing
Choice of Authorize.Net or MX Merchant payment gateways
QuickPay virtual terminal
Full line of credit card terminals, including Verifone Engage V200c, Fiserv FD-150, Ingenico Desk/5000, and Dejavoo Z11 models
Full line of Clover POS systems
Credit card surcharging (no-fee, zero-cost credit card processing) program available

Dharma Merchant Services Pricing

Offering competitive interchange-plus pricing, Dharma also has an exclusive program for B2B businesses that sports discounted rates for merchants processing Level II and III data. For this, you’ll need the MX B2B app, which costs $20/month.

Other Dharma fees include:

$15/month account fee ($12/month for nonprofits)
Interchange + 0.15% + $0.08/card-present transaction (volume discounts available)
Interchange + 0.10% + $0.08/card-present transaction (qualified nonprofits)
Interchange + 0.20% + $0.11/card-not-present transaction (volume discounts available)
Interchange + 0.10% + $0.11/card-not-present transaction (qualified nonprofits)
No gateway fees with MX Merchant
$10/month for recurring billing (MX Merchant)
$25/month for ACH processing
$0.40 per-transaction ACH payment fee
No annual fee
No PCI compliance fees
No monthly minimum
$49 account closure fee

What To Watch Out For

Dharma is an excellent merchant services provider for many business types, but it’s not the most cost-effective solution for businesses processing under $5K/month.

When To Use Dharma Merchant Services

You run a nonprofit organization that makes B2B payments
Your business needs quality B2B payment processing, and you process upwards of $10K/month

PaymentCloud: Best For High-Risk Businesses

PaymentCloud

Get Started With PaymentCloud

Total Rating	4.1
Fees & Rates4.3 Pricing 4.0 Affordability 4.6
Products & Services5.0
Contract2.8 Commitment 2.1 ETF & Other Fees 3.4
Sales & Advertising Transparency3.9 Sales Practices 4.0 Web Presence 3.4
Customer Service4.2
User Reviews4.0

Exclusive Promo: PaymentCloud will give you $200 if they can't beat your current rate. Get Your Quote

Pros

Accepts high-risk B2B businesses
Reasonable rates and fees
ACH processing

Cons

No international money transfers
No publicly disclosed pricing for high-risk businesses
High-risk businesses may have to accept a multi-year contract with an early termination fee

Why PaymentCloud Is Great For High-Risk Businesses

We chose PaymentCloud for this list because it offers honest payment processing to B2B companies in the high-risk space. While the high-risk processing industry is rife with shady business practices, PaymentCloud is hailed in the industry as an ethical provider, offering an unparalleled level of support -- not just to existing clients but to potential clients during the application/underwriting process.

PaymentCloud Features

PaymentCloud specializes in high-risk processing but serves low-risk businesses as well. Here’s some of what PaymentCloud offers:

Mobile processing solution
Virtual terminal
Authorize.Net, NMI, or USAePay payment gateways
ACH and eCheck processing
Paysley QR-code payment service

While PaymentCloud does offer ACH processing (but not international money transfers), it may be harder to obtain than credit card processing. The highest-risk B2B merchants may even have to start with only eChecks (similar to ACH) to set up a payment history before they can be approved for credit card and/or ACH processing.

PaymentCloud Pricing

No account setup fee
No monthly minimum (low-risk accounts)
Interchange + 0.05%-0.30% + $0.08-$0.10 per transaction (low-risk accounts)
Processing rates vary by acquiring bank/back-end processors (high-risk accounts)
$15/month account fee (low-risk accounts)
Account fees vary by the acquiring bank/back-end processor (high-risk accounts)

Because PaymentCloud is not a direct processor (as with almost all high-risk specialists) and instead partners with other banks and processors to maximize your odds for account approval and stability, the company can’t provide pricing information for high-risk businesses. If this is you, your rates and fees will depend on the processor you get matched with. Nonetheless, if you accept B2B transactions and you deal in bail bonds, adult entertainment, CBD, or another endeavor considered high-risk by the banks, PaymentCloud will find you the best deal possible.

PaymentCloud offers both interchange-plus and tiered pricing. If at all possible, get an interchange-plus quote. Only accept a tiered pricing plan if you absolutely must. However, as with all such providers, the highest-risk merchants will likely have to accept tiered pricing.

What To Watch Out For

In addition to tiered pricing, high-risk businesses may have to accept a multi-year contract with an early termination fee (ETF). While we recommend that low-risk merchants avoid this type of arrangement, many high-risk merchants will have no choice, though it never hurts to try to negotiate a better deal.

When To Use PaymentCloud

Your business is considered high-risk, and you want to accept B2B payments electronically

Helcim: Best For International B2B Businesses

Helcim

Total Rating	4.9
Fees & Rates5.0 Pricing 5.0 Affordability 5.0
Products & Services4.4
Contract5.0 Commitment 5.0 ETF & Other Fees 5.0
Sales & Advertising Transparency5.0 Sales Practices 5.0 Web Presence 5.0
Customer Service4.8
User Reviews4.5

Pros

International payment acceptance
Competitive and transparent interchange-plus pricing
ACH processing

Cons

Not for high-risk merchants
Not cost-effective for businesses processing under $5K/month
The Helcim Card Reader is on the pricey side

Why Helcim Is Great For International B2B Businesses

We've chosen Helcim as a top B2B payment processor due to the great value it provides to a wide variety of businesses, including B2B businesses. For international B2B payments, Helcim offers outstanding processing capabilities. Regardless of the payer's local currency, you'll receive your funds in your currency without any conversions.

Helcim sports a 4.9/5 rating from Merchant Maverick, and it's not hard to see why. Offering transparent interchange-plus pricing, month-to-month contracts, exceptional direct customer support, and low fees, Helcim also offers every business, regardless of history or processing volume, interchange-plus pricing, which is great news for new B2B companies. High-volume businesses are eligible for discounted rates.

Helcim Features

Full-service merchant account
Proprietary Helcim Card Reader for in-person payments
Helcim Payments app for mobile processing
Virtual terminal included with each account
Helcim POS software (requires tablet, laptop, or desktop computer)
Access to Helcim API for customized credit card payments

Helcim also lets you build a hosted payment page for the convenience of your B2B clients — you’ll get a customizable template into which you can add any field you need, including recurring payments, invoice payments, customer registration, and so on.

Helcim Pricing

Interchange + 0.40% + $0.08/card-present transaction (volume discounts available)
Interchange + 0.50% + $0.25/card-not-present transaction (volume discounts available)
Helcim Card Reader: $99/unit
No monthly or annual account fees
No PCI compliance fees
No monthly minimum

What To Watch Out For

Helcim is an outstanding merchant services provider for a wide range of businesses. However, it may not be the most cost-effective choice for those processing under $5-10K/month.

When To Use Helcim

You frequently send and receive B2B payments across borders
You need a top credit card processor, and you process more than $5-10K monthly

Get Started With Helcim

Stripe Payments: Best For eCommerce Businesses

Stripe Payments

Get Started With Stripe Payments

Total Rating	4.7
Fees & Rates4.7 Pricing 4.4 Affordability 5.0
Products & Services4.5
Contract5.0 Commitment 5.0 ETF & Other Fees 5.0
Sales & Advertising Transparency5.0 Sales Practices 5.0 Web Presence 5.0
Customer Service4.5
User Reviews4.1

Pros

Transparent, simple flat-rate pricing
Great for international B2B commerce
Powerful developer tools

Cons

Requires technical skill to implement
Occasional account stability issues
Doesn’t accept high-risk businesses

Why Stripe Is Great For eCommerce Businesses

Stripe was an obvious choice for us here as it has a great deal to offer B2B sellers. With its powerful developer tools, it's particularly appealing to businesses with varied and sophisticated payment needs. Businesses with basic payment needs may find Stripe overkill, as it takes some technical know-how to set up and use.

Stripe's abundance of plugins, integration partners, and developer tools give you much more than payment processing -- it's an entire commerce ecosystem, and one which is particularly well-suited to international B2B transactions.

Along with ACH and credit card processing, Stripe supports many different universal payment types & mobile wallets, along with a broad array of local payment types available in particular regions worldwide.

Stripe Features

Stripe Payments integrated payments platform
Stripe Virtual Terminal
Stripe Radar anti-fraud protection
Stripe Terminal API & card readers for card-present transactions
ACH processing included with every account
Extensive library of APIs and developer tools
Broad support for international payments and local payment methods
Many ancillary services for establishing and running your business

Stripe Pricing

No monthly fees for a basic account
2.9% + $0.30 per online credit/debit transaction (+0.5% for manually entered transactions)
2.7% + $0.05 per in-person credit/debit transaction via Stripe Terminal
+1% for international cards
+1% for currency conversion (if required)
0.8%/ACH direct debit transaction ($5.00 maximum)
1.2%/ACH direct debit transaction (two-day settlement)
$1.00/ACH credit payment
$1.50/instant bank account validation
Additional fees for optional add-on services

Our full Stripe pricing breakdown has further details.

What To Watch Out For

Unlike the previous providers listed here, Stripe is a third-party processor, and companies using TPPs need to be mindful of the need to minimize the risk of account holds & cancellations.

When To Use Stripe

You run an eCommerce business, and you need a top B2B processing solution
You need an online payment processor with top-notch developer tools for advanced customization

Square: Best For New B2B Businesses

Square

Total Rating	4.8
Fees & Rates5.0 Pricing 5.0 Affordability 5.0
Products & Services4.7
Contract4.3 Commitment 3.5 ETF & Other Fees 5.0
Sales & Advertising Transparency5.0 Sales Practices 5.0 Web Presence 5.0
Customer Service4.9
User Reviews4.9

Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.

Pros

Transparent flat-rate pricing
Square Invoices has many B2B-friendly features
ACH processing

Cons

Limited international payment functionality
Account stability issues
Does not support high-risk businesses (except CBD sellers)

Why Square Is Great For New B2B Businesses

We chose Square here as it is one of our favorite third-party processors -- one that is particularly easy to set up and use for new businesses. Square offers a wide range of payment services, many of which suit B2B merchants well.

For the simplest possible B2B payment solution, Square offers Cash App, a Venmo-like payment service that specifically accommodates B2B credit/debit transactions and which sets up a payment page for you.

For more sophistication, there's Square Invoices.

Square Features

Square’s value proposition is remarkable. For no monthly fee, you’ll get invoicing (one-time and recurring), ACH processing (a recent service addition), estimates, sales tracking, contact management, appointments, and more.

Aggregated account for credit/debit card processing
Free mobile card reader (magstripe-only) included with an account
EMV and NFC-capable card readers
Square Register POS system available
ACH processing included with every account
Square Online Store website builder for eCommerce businesses
Basic Square Invoices feature included at no extra cost
Analytics and reporting available through Square Dashboard

Unfortunately, regarding international payments, Square isn’t as strong as Stripe, as Square accepts fewer currencies, charges more in conversion fees, and doesn’t accept regional payment methods.

Square Pricing

No setup or application fees
$0/month for Square Free account ($29+/month for Square Plus accounts)
2.6% + $0.10/card-present transaction
2.9% + $0.30/online transaction
3.5% + $0.15/manually keyed-in transaction
2.9% + $0.30/invoice paid via credit or debit card
3.5% + $0.15/invoice paid via card on file
1%/ACH transaction (minimum $1 charge)
No ACH reject or chargeback fees
Square Contactless & Chip Reader — $49-59 each
Square Stand With Contactless & Chip Reader — $169
Square Terminal — $299
Square Register — $799 (or $39/month for 24 months)

Read our Square pricing guide to learn more.

What To Watch Out For

Like Stripe, Square is a third-party processor (or aggregator), meaning you’ll want to take steps to minimize the possibility of experiencing a funding hold or an account termination.

When To Use Square

Your business is new and/or low-volume, and you want a simple and powerful B2B payment processing solution

Get Started With Square

Payment Processing Rating Methodology

Merchant Maverick has been researching the payment processing industry since 2009. Our writers have reviewed hundreds of credit card processors, merchant account services, and mobile payment apps, evaluating each provider carefully on several different metrics.

When comparing different payment processing companies and applications to one another, we consider numerous data points. Our experts start by comparing credit card processing rates, the presence of additional fees, contract length, sales practices, and the presence or absence of additional features and services, like point of sale software. Each provider is judged on its own merits and how well it stacks up to industry standards; then it is weighed against the other providers on the list.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure every company or application included meets our internal standards for quality and reputation. Any list of recommended payment processors on our site might contain a mix of standard merchant accounts, third-party payment processors, mobile payment devices, and high-risk payment processors, depending on what our expert feels is the best fit for certain scenarios or business types.

For additional details about Merchant Maverick’s review and rating processes, please refer to any or all of the following methodology pages:

Years reviewing payment processors

100+

Providers evaluated

Attributes and features assessed per vendor

40+

Years combined experience

How Much Does B2B Payment Processing Cost?

Strictly speaking, when you receive a payment, the amount you pay for processing will be the same regardless of whether that payment came from a business or an individual customer. However, the B2B payments landscape is much more complex than the B2C payments landscape.

Perhaps the biggest difference is that the average B2B transaction is much higher in value than the average B2C transaction. The volume of goods/services being sold tends to be much higher as well. This means that B2B businesses must have the flexibility to deal with a more complex payment process than what a B2C business must accommodate.

Another difference lies in the nature of the transactions themselves. Unlike B2C transactions, B2B payments are not made in advance of the goods/services being delivered. Often, this requires invoicing, which extends the time over which the transaction takes place.

On the whole, considering the vast differences in the nature of the industries in which B2B transactions take place, we can’t provide an estimate of the overall percentage of payment volume you can expect to pay in fees. However, if you have a good idea of what you require in terms of payment methods, payment information storage, billing cycles, and other factors, you should be better able to find the provider that offers what you need at a reasonable cost.

Lower Your Costs For B2B Credit Card Processing

The good news is that if you process a substantial portion of your transactions as B2B, you can enjoy lower interchange costs as well as lower overall processing costs. However, you may have to jump through a few hoops to establish yourself as a B2B merchant, and the specialized software you’ll need to take advantage of those lower rates isn’t free.

You’ll want to evaluate very carefully whether it’s cost-effective to add specialized B2B processing services to your merchant account. (Also note that with third-party processors like Square and PayPal, special B2B credit card processing rates are not supported.)

Classifying With A Merchant Category Code (MCC Code) For A Special B2B Rate

Not to be confused with the Merchant Identification Number (MID), Merchant Category Codes (or MCC codes) are assigned by credit card associations to classify businesses according to the products and services they provide. Before you can take advantage of the lower interchange rates available for B2B transactions, you’ll need to be assigned an MCC code that identifies you as a B2B merchant.

Unfortunately, all the major credit card associations have their own set of MCC codes, and they all treat them differently when it comes to B2B transactions. Visa, for example, will offer you a discounted interchange rate on B2B transactions if you’re assigned a qualifying MCC code and meet certain other criteria. Mastercard also uses MCC codes but doesn’t offer a discount for B2B transactions.

Because each card association uses its own set of MCC codes, your business will end up with a separate code for each type of credit card you accept. Establishing the proper MCC code for your business is ultimately up to the credit card associations, although your merchant services provider can assist with this task to make sure you’re assigned an appropriate code.

What You Need To Know About Data Levels

In case you’re already feeling a bit overwhelmed, the good news is that processors can (and should) assist you in setting up what you’ll need to collect the proper information when it comes to data levels if you opt to go for specialized B2B rates. The primary reason is that you’ll need some specialized software to input the sale correctly, and here’s why:

Credit card associations recognize three levels of payment data. Each has its own requirements for information that a merchant gathers at the time of the sale: Level I, Level II, and Level III data. Each major credit card association has its own separate way of classifying this data, too. Visa, for example, refers to these three data categories as “data levels,” while Mastercard calls them “data rates.” (Nothing is made simple in the world of payment processing!)

For standard transactions between your business and individual consumers, you only need Level I data to process your transaction. Level II and III data is not submitted, as you won’t get a discount on these interchange rates.

Because most businesses primarily sell to individuals rather than other businesses, your merchant account is likely only set up to handle Level I data — unless you add a service to record and transmit Level II and Level III data. This option is usually only available as an optional upgrade, and you’ll often be charged an additional monthly fee for it.

Here’s an overview of the typical data requirements for each data level:

	Level I Credit Card Processing	Level II Credit Card Processing	Level III Credit Card Processing
Requires	Merchant DBA name, transaction amount, and billing zip code	All Level I data, sales tax amount, customer code, merchant postal code, merchant tax ID number, invoice number, and order number	All Level I & II data, product commodity code, item ID or SKU, item description, unit price, quantity, unit of measure (each), extended price, and line discount
Applies To	B2B and B2C	B2B	B2B

As you can see, entering Level III data requires a lot of additional information for each transaction. Unfortunately, manually entering this data on a standard countertop credit card terminal is not an easy process. If you’re using a virtual terminal or a payment gateway, it’s a little easier since you’ll have access to a full alphanumeric keyboard.

Some merchant services providers can also set you up with a specialized software load for your terminal that automatically captures the required data, but you’ll have to pay extra for it. The bottom line is that manually entering Level II and III data is only a practical option for merchants who only handle the occasional B2B transaction and for whom specialized B2B processing software would not be cost-effective.

Again, the good news is that your processor will assist you in setting up what you need, and it’s not too complicated once you get started.

Using B2B Payment Terms To Manage Your Cash Flow

So far, we’ve discussed payment methods, payment processors, costs, and trends as they relate to B2B business activity. Continuing this theme, one final matter we should broach is B2B payment terms.

What Are B2B Payment Terms?

In a B2B context, payment terms refer to the payment timeframes established by the two parties to a B2B transaction, such as those established between a corporate buyer and a supplier of goods. Clearly, buyers prefer to have lenient payment terms, while sellers would prefer to be paid more quickly.

How Do Payment Terms Affect My Cash Flow?

This article focuses on the needs of B2B sellers, so that’s the perspective from which we’re coming at this issue. Naturally, payment terms that require timely payment will help improve your cash flow. What can you do to get payment terms that are as advantageous to you as possible?

Send an invoice to the buyer as soon as the transaction is completed
Send friendly reminders as the payment deadline approaches, and enforce late fees if the deadline is not met
Consider offering a discount to incentivize quick payment

The Bottom Line On Choosing The Right B2B Payment Processing Solution For Your Business

Relying on paper checks to get paid in B2B transactions costs you extra time, money, and comes with more inherent security risks and problems than you might realize. Despite this, paper checks are hanging on for dear life. From well-known corporations to the small mom-and-pop, sometimes what we’ve always done seems like the path of least resistance.

However, adding new B2B payment options is not only a step in the right direction as far as saving time; it can trim down your payment cycle, get you paid faster, and reduce payment fraud. The payment processors we’ve listed and the tips we’ve given should help you operate more effectively in the B2B arena.

FAQs About B2B Payment Processing

What are the key features of B2B payment systems?

B2B merchant services providers should provide both credit card processing and ACH processing. Ideally, your provider should also offer special B2B processing rates, an invoicing service that allows you to create and send customized invoices, and a way to automate the process of notifying B2B buyers of impending payment due dates.

What is a B2B payment gateway?

A B2B payment gateway is a software application that allows a vendor to accept electronic payments from a buyer.

What is B2B accounts payable?

In a B2B context, the accounts payable department of the selling business is the entity responsible for ensuring that outstanding invoices are paid on time.

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Jason Vissers

Senior Staff Writer at Merchant Maverick

Jason has been writing about small business software platforms, services, and financing since 2015. Jason’s expertise has been featured in Yahoo Finance, Time/NextAdvisor, Home Business Magazine, CreditCards.com, GoBankingRates, TheLadders.com, and other publications. He has a bachelor’s degree in Political Science from San Diego State University and currently lives in Philadelphia, Pennsylvania.

@jvizz_mm

View Jason Vissers's professional experience on LinkedIn.

Latest posts by Jason Vissers (see all)

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Sources

25% of B2B Payments Are Made by Check (Accessed 02/22/2024) — PYMNTS.com
Attempted Check Fraud Spiked 43 Pct. In Two Years (Accessed 02/22/2024) — PYMNTS.com

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1. Dharma Merchant Services

❮ ❯

Best for nonprofits
$15 monthly fee for a basic account, $20/month for the MX B2B app
Interchange-plus pricing

2. PaymentCloud

❮ ❯

Best for high-risk businesses
$15/month for low-risk businesses; monthly fees vary for high-risk businesses
Interchange-plus & tiered pricing offered

3. Helcim

❮ ❯

Best for international B2B businesses
No monthly fee
Interchange-plus pricing

4. Stripe Payments

❮ ❯

Best for eCommerce businesses
No monthly fee for basic services
Flat-rate pricing

5. Square

❮ ❯

Best for new businesses
No monthly fee for basic services
Flat-rate pricing