Everything You Need To Know About B2B Payments & Solutions In 2022

Accepting electronic payments gives you faster, cheaper, and more secure alternatives to the paper check. Providers also might offer tools for managing your orders, invoices, and projects.

• Jason Vissers Jason Vissers has been researching, analyzing, and writing about small business software and finance since 2015. His financial expertise has been cited in numerous publications, including The Ladders. Jason graduated with a Political Science degree from San Diego State University in 2001.

  Expert Analyst & Reviewer

• 
  Feb 22, 2022

  UPDATED

Digital payments have become entirely normalized among everyday consumers. Given their convenience, it’s not hard to see why. When splitting a restaurant bill among a group of friends is it easier for everyone to chip in cash or to simply use Venmo? Likewise, when paying for groceries in the checkout line, do you prefer to pay with a credit or debit card or by writing out a check while the line backs up behind you?

However, while digital transactions are the norm among consumers, the business-to-business (B2B) payments landscape is different, with many businesses still preferring to pay each other via paper checks. While some businesses may prefer this tried-and-true old-school payment method, relying on paper checks can cost your business more than you think in terms of time, labor, and fraud risk.

The means by which your business sends and receives payments affect you, your employees, and your customers more than you may realize. When you know how you can cut costs, save time, and get paid faster with B2B payment processing, you can find the solution that fits your business needs. Let’s start with the basics.

Learn More About Our Top Picks

Company	Best For	Next StepsBest For
Dharma Merchant Services Read More	Credit card & ACH processing Best for companies processing $10K+/month and who accept domestic B2B payments	Credit card & ACH processing Best for companies processing $10K+/month and who accept domestic B2B payments Visit Site Read More
Payment Depot Read More	Credit card & ACH processing Best for high-volume B2B sales	Credit card & ACH processing Best for high-volume B2B sales Visit Site Read More
PaymentCloud Read More	Credit card & ACH processing Best for high-risk B2B businesses	Credit card & ACH processing Best for high-risk B2B businesses Visit Site Read More
Helcim Read More	Credit card and ACH processing Best for the widest variety of B2B businesses	Credit card and ACH processing Best for the widest variety of B2B businesses Visit Site Read More
Stripe Payments Read More	Credit card & ACH processing Many different mobile wallets and local payment types supported Best for international B2B businesses	Credit card & ACH processing Many different mobile wallets and local payment types supported Best for international B2B businesses Visit Site Read More
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Square Read More	Credit card & ACH processing Best for smaller B2B businesses	Credit card & ACH processing Best for smaller B2B businesses Visit Site Read More
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Read more below to learn why we chose these options.

What Is A B2B Payment?

A business-to-business (B2B) payment is simply a commercial transaction between two businesses. These transactions are typically much higher in value than most business-to-consumer transactions, are often recurring, and may be made in quarterly or monthly installments.

The Most Common B2B Payment Methods

How does the B2B payment landscape differ from the B2C payment scene? The main difference is that payment methods that have fallen out of favor among digital-minded consumers, such as checks and wire transfers, are still commonly used as business-to-business payment methods.

The 6 Best B2B Payments Solutions

The best B2B payments solutions can handle a variety of payment methods. From credit cards to ACH to other digital payment forms, the following payment processors offer what businesses need to make and accept B2B transactions while keeping costs reasonable.

1. Dharma Merchant Services

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. Dharma’s services and pricing structure make it great for companies taking US B2B payments domestically and who process over $10,000/month. Unfortunately, Dharma doesn’t handle international money transfers.

Dharma offers businesses an exclusive program for B2B businesses that sports discounted rates for merchants processing Level II and III data (read our guide to B2B payment processing if you’re not sure what this refers to). For this, you’ll need the MX B2B app, which costs $20 per month.

Dharma’s eCommerce plan suits the needs of businesses taking B2B payments in response to electronic invoices. At $25/month, the plan offers competitive interchange-plus pricing for credit/debit card sales. For an additional $25/month, you’ll get ACH processing, with each transaction incurring a $0.40 per-transaction fee. Your ACH payments can be accessed through the MX Merchant portal, Dharma’s all-in-one account access and reporting system. This portal includes a virtual terminal, a customer database, a mobile processing app, plus it auto-qualifies B2B merchants for lower rates. And if you process over $100K/month, you’ll unlock even lower rates.

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2. Payment Depot

While we here at Merchant Maverick are fans of interchange-plus pricing, Payment Depot’s membership pricing model is B2B-friendly in that it offers savings to businesses processing large ticket sizes, as is often the case with B2B businesses. Monthly fees range from $59-$99 and per-transaction fees range from $0.07-$0.15, depending on your subscription plan. It’s a refreshingly straightforward pricing scheme and one which should suit many different B2B business types. You’ll also get a free virtual terminal and payment gateway with any subscription tier.

Payment Depot offers ACH processing, but unfortunately, the company doesn’t offer any specifics on its website regarding ACH pricing or any other details. You’ll have to contact the company for details, but given the company’s reputation for fairness, don’t expect Payment Depot to charge significantly more for ACH transactions than the other providers listed here.

Unfortunately, Payment Depot doesn’t offer international money transfers, and the company only offers merchant accounts to US businesses. But if yours is a US business and you process a high volume of B2B credit card transactions on a monthly basis, consider Payment Depot.

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3. PaymentCloud

High-risk processing is an industry rife with shady business practices, which is why we’re big on PaymentCloud. PaymentCloud is a high-risk processing specialist, but unlike many such companies in this space, PaymentCloud offers an unparalleled level of support — not just to existing clients but to potential clients during the application/underwriting process.

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 ongoing account stability, the company can’t provide pricing information. Your rates and fees will depend on the processor you’re ultimately 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, you can trust PaymentCloud to 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. Additionally, while PaymentCloud does offer ACH processing (no international money transfers, unfortunately), it may be more difficult to obtain than credit card processing. The highest-risk B2B merchants may even have to start with only eChecks (similar to ACH, but not the same thing) to set up a payment history before they can be approved for credit card and/or ACH processing.

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4. Helcim

Helcim sports a 5-star rating from Merchant Maverick, and it’s not hard to see why. Offering transparent interchange-plus pricing, month-to-month contracts, great customer service, and low fees, Helcim provides great value to a wide variety of businesses, including B2B businesses. Regarding pricing, every business, regardless of history or processing volume, will get interchange-plus pricing — excellent news for new B2B companies. High-volume businesses are eligible for discounted rates.

Like most of the providers listed here, Helcim offers ACH processing. Additionally, the company specifically touts its international credit card processing capabilities. Regardless of the credit card holder’s local currency, you’ll receive the funds in your currency without any conversions.

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, etc. Combine all this with exceptional direct customer support, and you have a very attractive B2B payments option.

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5. Stripe

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. Beyond that, however, Stripe has a great deal to offer B2B sellers, and 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 to be overkill, as it generally takes a certain degree of technical know-how to set up and use.

Stripe pricing couldn’t be more straightforward. Your B2B card-not-present transactions will process at 2.9% + $0.30 per transaction (plus an additional 1% for international transactions) while with ACH payments, you’ll pay 0.8% per transaction (capped at $5). There are no monthly fees.

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.

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6. Square

Square is another third-party processor offering a wide range of payment services, many of which B2B merchants would do well to investigate. 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. 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.

Online transactions, including invoice payments, are charged at a 2.9% + $0.30 per-transaction rate, while ACH transactions cost 1% with a minimum $1 charge per transaction and no fee cap (not the cheapest ACH solution).

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.

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Looking For One Of These B2B Payment Processors?

The following two payment solutions are formidable options that could certainly be used by businesses to send and receive B2B payments. However, due to some key deficiencies, they just missed our best-of list.

PayPal

Payments colossus PayPal is used by millions of businesses (including B2B businesses) around the world and is a trusted name among consumers and businesses alike. It offers an enormous number of integrations and developer tools and is a formidable business tool. However, a few factors contributed to them just missing our best-of list.

For one thing, PayPal doesn’t support ACH payments. This means that your only options for taking high-value B2B payments will involve paying much more than you would with an ACH transaction. For another thing, in 2021, PayPal introduced a new pricing scheme that makes determining your fees much more complicated, especially if your clients pay in a variety of different ways (invoice, payment link, PayPal digital payment, etc.). So while you could certainly go with PayPal if you were so inclined, there are providers that offer more payment options in a more cost-effective manner.

QuickBooks Payments

QuickBooks Payments works with the company’s mega-popular QuickBooks accounting software, making it an appealing option for B2B businesses that already use QuickBooks to balance their books. With ACH processing, invoicing, and currency conversion, QuickBooks Payments is a solid B2B option. However, with limited invoice customization, relatively high per-transaction fees, a lack of support for recurring billing/subscriptions, and sluggish deposit times, most businesses should be able to find an option that better suits their needs.

How Much Does B2B Payment Processing Cost?

The topic of B2B payment processing costs is a complex one. 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 with 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.)

Trends In B2B Payments

It’s no secret that the COVID-19 pandemic has caused an enormous amount of economic disruption worldwide, which has impacted B2B business greatly. According to an upcoming SMB survey previewed by PYMNTS.com, 49.7 percent said cash flow woes have caused them to be unable to pay suppliers or monthly bills, with 20 percent having started doing this in 2020 and an additional 30 percent either continuing or starting this practice in 2021. With pandemic-related disruptions continuing into 2022, expect instances of nonpayment to remain a factor in your operations over the next year or so.

Likewise, payment fraud and scams are proliferating as never before. A 2020 study by the Association For Financial Professionals found that the percentage of businesses experiencing attempted or actual B2B payments fraud to be rising steadily since 2013. This trend only increases the importance of moving away from insecure paper checks and toward the acceptance of more secure electronic payment methods.

Using B2B Payment Terms To Manage Your Cash Flow

Thus 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

For more on how to improve your business’s cash flow, check out our article, 12 Strategies To Improve Cash Flow In 2021-2022.

How Do I Choose The Right B2B Payments Solution For My 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 payment options for your customers 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.

For more small business advice regarding cash flow, payments, and more, check out the following resources!

• How To Find & Open The Right Bank Account For Your Small Business
• What Is Spend Management & Can It Help My Small Business?
• Is Invoice Factoring Right For Your Small Business?
• Best Practices For Managing Your Corporate Credit Card
• Square Banking Review

Common Questions About B2B Payments

In Summary: The 6 Best B2B Payments Solutions

1. Dharma Merchant Services:
   • Credit card & ACH processing
   • Best for companies processing $10K+/month and who accept domestic B2B payments
2. Payment Depot:
   • Credit card & ACH processing
   • Best for high-volume B2B sales
3. PaymentCloud:
   • Credit card & ACH processing
   • Best for high-risk B2B businesses
4. Helcim:
   • Credit card and ACH processing
   • Best for the widest variety of B2B businesses
5. Stripe Payments:
   • Credit card & ACH processing
   • Many different mobile wallets and local payment types supported
   • Best for international B2B businesses
6. Square:
   • Credit card & ACH processing
   • Best for smaller B2B businesses

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Jason Vissers

Expert Analyst & Reviewer at Merchant Maverick

Jason Vissers has been researching, analyzing, and writing about small business software and finance since 2015. His financial expertise has been cited in numerous publications, including The Ladders. Jason graduated with a Political Science degree from San Diego State University in 2001.

@jvizz_mm

View Jason Vissers's professional experience on LinkedIn.

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