by Ty Hardison

Why the future of B2B payments lies in APIs

APIs allow companies to communicate with greater speed and flexibility.

For decades, enterprises have relied on electronic data interchange services to send information of all types to one another. The standards-based system packages and encrypts data so it can be routed to suppliers or partners, where it gets transformed back into a readable file. As EDI became the paperless communication method of choice for companies all over the world in the 1980s and 90s, it also became one of the major standards for companies sending card data to payment processors.

While EDI has held up well for the last half a century, the Internet is changing rapidly, and along with it, so is the way companies do business. Eric Rempel, CIO at Redwood Logistics, compared EDI to an "old dial-up modem standard," reports SearchSOA. 

Rempel said that while EDI has been a necessary tool for businesses in the past, the changing online landscape is beginning to leave the technology behind. As enterprises change the way they use EDI, Rempel explained, frustrating inconsistencies arise. What's more, even when both sender and receiver are on the same page, EDI services are not easy to understand. As a result, companies often use third-parties to manage their EDI services, which Rempel sees as an unnecessary cost.

"It's a little outdated, and you can get things done a lot faster without [EDI], and it's the same data -- just put in a different structure," Rempel told SearchSOA.

"APIs allow companies to communicate with greater speed and flexibility."

The 21st Century Solution
Luckily for enterprises, a solution is making its way into the B2B landscape that allows companies to communicate with greater speed and flexibility. Using an application programming interface, B2B companies can send information to one another via the Web through a direct portal. As a result of the more streamlined communication, businesses see decreases in human error, boosts in efficiency and opportunities in new distribution channels, according to the experts at Nordic APIs.

Specifically, this new communication method has had a profound effect on the way companies accept payments. Rather than sending their payment data through a third-party EDI manager on its way to the payment processor, wholesalers can simply access the payment processor directly in their merchant payment gateway, saving them time, convenience and unnecessary management costs. 

For more information about Vantage's B2B payment gateway API, email us at support@vantagecard.com.

by Ty Hardison

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