In an attempt to provide a more comfortable buying experience and generate new sales opportunities, a number of vendors selling to other businesses (B2B sellers) have implemented solutions and strategies to allow their companies to mirror business-to-consumer (B2C) merchants. This can mostly be seen in the eCommerce market. However, vendors that don't learn the differences between B2C and B2B sales and don't obtain the payment solutions to cater to each will likely fail to yield optimum results selling online or in any other environment.
The main difference, of course, is that B2B vendors sell to different customers than their B2C counterparts, but the differences go beyond that point. When accepting payments, the variances create a series of factors that merchants must consider.
B2C payments can come in a number of forms. Standard personal credit cards, checks or, while it's becoming less and less of an option these days, cash are all typically seen in these transactions. B2B payments are typically not made from personal accounts. Usually, the company is paying for the product or service and the procurement specialist tasked with actually making the payment is using a purchasing card, or p card, linked to business funds.
There are numerous benefits to accepting B2B payments. Commercial p cards can be processed faster than traditional invoice payment processes, so companies can improve their profitability. By processing additional payment data, organizations can also pay a lower rate. However, it should be noted that vendors must submit additional data elements like line item detail in order to receive the lowest possible interchange rate.
Understanding these differences will go a long way toward improving a vendor's success selling to other businesses. Working with a payment solutions provider will allow companies to obtain the tools needed to enhance their efforts in the B2B sector.