Vantage B2B News

The Staples model: How increasing its online presence helped the retailer become a B2B powerhouse

Tue, 21 May 2013 15:37:00 GMT

Retailers interested in establishing themselves as B2B providers while increasing their online presence need to look not further than Staples to see how it is done.

The office superstore may have had humble beginnings, selling back to school supplies to families out of its brick-and-mortar locations, but the company is so much more than that today. Staples has become a powerhouse in B2B sales and it has its innovative thinkers who understood the power of online sales to thank for its success.

According to a report from an external contributor and featured in the online publication Bezinga, Staples is investing $250 million into increasing its online and mobile commerce operations. Executives at the company understand that procurement specialists are taking to their computers and smartphones to search for supplies and are making smart investments to ensure they have this need covered.

Staples is performing well in the market this year, primarily because of its increased online business. According to the news source, total online revenue reached $10.605 billion last year, a 5 percent increase from 2011's final number of $10.1 billion. By increasing its online mobile presence, Staples should be in a position to capture new business opportunities from individuals looking to buy directly from their smartphones or tablets.

Ron Sargent, Staples' chairman and chief executive officer, recently gave a statement about his company's recent success moving to digital sales and he shared some insights about where the company wants to go in the near future.

"Our vision is to establish Staples as the single-source product authority for millions of businesses," Sargent said. "We are building on the strengths that are the foundation of our success by focusing on five key priorities: accelerate growth in our online businesses, fully integrate retail and online, improve retail store productivity, restructure our international operations and return cash to stakeholders."

Certainly not every company has the same direct needs as Staples. Many small providers aren't in a position to start thinking about shareholder relations. However, that doesn't make Staples any less of a model organization. Its ability to predict the future of commerce and capitalize early on innovative trends is why Staples will likely survive in an increasingly uncertain economy and companies can follow similar philosophies and incorporate them into their own operations.

However, simply keeping up with online shopping trends is only a part of the equation. For businesses to truly capitalize they must ensure they are well equipped with the payment solutions needed to ensure they yield the best possible value from each transaction. Processing Level 3 data is essential because it helps vendors pay the lowest possible interchange rates. A company that follows Staple's success and increases its business by offering mobile commerce and online shopping opportunities will want to obtain a payment gateway that will accept this kind of payment because the more transactions that are processed equals the more chances the vendor has to save.

It's a competitive market out there, and the vendors that set themselves up to process innovative payment methods will ultimately go a long way toward ensuring their long-term viability. Working with a B2B payments consultant can help businesses with this process.

Differentiating yourself from the competition can help win government contracts

Mon, 20 May 2013 16:57:00 GMT

The ability to obtain government contracts is crucial for a number of businesses in virtually any industry. Companies that can rely on government money are likely to experience a greater number of advantages from their increased revenue stream. The trouble is, the market is tremendously competitive, so winning government contracts is easier said than done.

An article in Onvia.com offers tips vendors can follow to help win government contracts. One of the key points of the article is that organizations have to differentiate themselves from their competition. Because those tasked with procuring products and services for their public sector offices often encounter a bevy or businesses constructed in a relatively similar fashion, vendors that take the extra step to establish themselves as a separate entity will likely be more successful winning contracts.

The article suggests going above and beyond to determine the best possible way to benefit the potential customer.

"Knowing the agency project goals, understanding the budget and offering a product or service that meets the goals is critical," the article says. "Make sure your bid meets delivery deadlines and that your company is able to manage expectations once the bid is won."

Additionally, vendors working with government agencies can stand out above the competition by obtaining the payment solutions needed to process Level 3 data. Because the GSA SmartPay program will soon be requiring Level 3 data, any organization that doesn't process this information will ultimately stand out, but for all the wrong reasons. Working with a payment solutions provider will help organizations obtain the tools needed to process this data quickly and efficiently. Not only will this benefit the customer and help win contracts, it will help the vendor ensure it pays the lowest possible interchange rate once the contract is won.

SAP users can integrate their hybris eCommerce platform with their ERP solution

Thu, 16 May 2013 11:14:00 GMT

As this blog has mentioned in the past, hybris is a leader in commerce platforms and is dubbed by many as the future of the industry. Today, hybris is taking its efforts one step further and can now be integrated with SAP's ERP and accounting solutions.

This is essential because not only are companies able to provide their customers with an innovative shopping experience with the hybris solution, they are also able to integrate financial data with their other SAP applications, which will help ensure that their accounts are balanced and their sales are in synch with the rest of their operations.

Patrick Finn, VP of channels, Americas at hybris, spoke in a recent press release about the eCommerce challenges companies face and how this integration can go a long way toward alleviating those difficulties.

"One of the major challenges manufacturers and distributors face when executing an eCommerce strategy is how to easily and cost-effectively integrate their commerce system with their ERP system," Finn said. "With more than 100 customers globally already incorporating hybris' state-of-the art commerce platform with SAP, there is a proven model for this integration. However, the new framework is a great asset to our customers and channel partners as the integration process will now be faster, easier and cheaper."

With its Vantage B2B integration, hybris is also helping their clients with the unique challenges of accepting commercial payments as well. Its new Level 3 card processing capability is available through its hybris Extend program and is ready for immediate use. The trifecta of hybris, SAP and Vantage B2B will offer any company conducting B2B sales with the most efficient and cost-effective sales and payment environment.

Bill.com sees increase in electronic payments

Thu, 16 May 2013 09:29:00 GMT

As this blog has mentioned in the past, Bill.com is helping change the way small businesses manage their AP and AR practices. With its innovative SaaS platform, the company encourages the use of electronic and online transactions. In fact, according to a new press release from the company, 40 percent of customer payments have transitioned from check to electronic.

Bill.com's advantage is that it helps small businesses that traditionally lack the resources needed to integrate electronic payments with accounting software and digital documents.

In the press release, Bill.com CEO René Lacerte explained that companies need to keep up with both consumers and large corporations who have already moved to adopt electronic payments.

"Our incredible network growth marks the advent of the ACH revolution," Lacerte said. "Consumers have already adopted ePayments, but businesses have lagged. Now, just as we freed financial professionals from error-prone, tedious manual accounting processes, we are removing the shackles of paper checks. Bill.com is democratizing treasury services and making ACH the payment method not of the future, but of now."

Bill.com is doing a great job helping its customers tackle the unique challenges of accepting commercial payments as well.

Businesses can use their Vantage Level 3 merchant account with the Bill.com service to submit the line-item invoice detail needed to qualify card payments at the lowest possible interchange rates and improve their own profitability.

Vantage and Bill.com offer a suite of business payment services to lower cost, increase productivity and enhance security, while extracting the greatest possible value from each transaction.

Study: electronic invoicing can save vendors up to 80 percent

Tue, 14 May 2013 13:57:00 GMT

The accounts receivable department has an important role to play in any business. The timeliness and efficiency of invoicing can dictate the effectiveness of a transaction and go a long way toward determining whether or not the party receiving the invoice will maintain a relationship with the company or will simply be a one-time customer.

Accounts receivable best practices involve streamlining the invoicing process to ensure a quick payment and a happy customer. This is even more important in the B2B sales cycle because accounts payable clerks at companies do not have time to wait to receive their invoices and will not put up with extensive delays.

To expedite the process, many companies are turning to electronic invoicing. This blog has talked about the benefits of this innovative accounts receivable method in the past, and it appears now that more companies are turning to this practice due to the incredible cost savings they produce.

According to a report from e-billing provider Billentis and sponsored by GHX, electronic invoicing can save roughly 60 to 80 percent on standard processing costs, compared to traditional paper invoicing. That means that businesses choosing to go this route will yield a significantly higher value from each transaction, in addition to making their customers happy.

Billentis owner Bruno Koch spoke in a press release about the risks associated with traditional invoicing and how filing electronically can drastically benefit the vendor.

"Today's finance departments face a complex and challenging business environment that requires tremendous business savvy, making innovation an essential driver of the department's excellence," Koch said. "Erratic markets, the globalization of trading, new regulation and compliance issues, increasing complexity of business processes and steady change/transformation have forced the function of finance to redefine its role in the organizations."

Working with a payment solutions provider will allow vendors to obtain the tools needed for a successful electronic invoice strategy.

Bill.com offers webinar to help those transitioning to paperless payment processing

Tue, 14 May 2013 10:52:00 GMT

The paperless revolution is affecting many areas of business, including payments. While they have traditionally been weighed down by numerous pieces of paper - invoices, checks and receipts, for example - the advent of digital technology has streamlined the process and provided new advantages for both vendors and their customers.

Bill.com is one of the organizations ushering in a new era of payment processing by offering innovative solutions that allow for quicker and more efficient transactions. The company's model is focused around taking any and all unnecessary components out of the sales process, which includes payments. In the era of big data, businesses can process and store all pertinent information regarding each transaction without having to resort to printing, which wastes both time and paper.

In an effort to support its customers, Bill.com is offering a free Webinar to anyone struggling with the transition to a paperless payment strategy. Users can log on and learn tips and best practices to help alleviate any risks pertaining to the removal of paper from their payment processing operations.

"We understand that going paperless can seem daunting, but this webinar will show just how easy and rewarding it can be," said René Lacerte, CEO and founder, Bill.com, in a recent press release. "Not only will you free your mind to accomplish great things, you will also feel good that you are helping the environment. There is no better time than now to go paperless, and we urge you to join the paperless movement today."

While going paperless can assist the payment process, vendors making B2B sales and accepting purchasing card payments must make sure they are processing Level 3 data to guarantee that they pay the lowest possible interchange rate. That's why Vantage B2B has partnered with Bill.com. We build off the benefits their users receive by offering the payment solutions needed to obtain the most value from each transaction.

How to entice government agencies to use their GSA charge cards

Fri, 10 May 2013 16:38:00 GMT

Recently, this blog talked about the fact that virtually all government purchases totaling an overall cost lower than $3,000 must be paid for with government charge cards. And while we addressed how vendors that are concerned with this requirement can alleviate any burdens it might cause, there may be some providers on the opposite end of the spectrum.

Some may want to accept these kinds of payments for all government transactions, regardless if they are over or under the $3,000 threshold. For merchants that wish to always accept this payment method, there are a number of things they can do with their customers to entice them to use their government charge cards.

For starters, offering a discount to government agencies that use these cards will give procurement specialists an incentive to use these cards for all kinds of purchases. Because they can expedite the processing phase, they are a benefit for vendors and by offering a discount to customers, they can benefit that side of the transaction as well.

"Offering a point of sale discount to Government cardholders is a great way to differentiate a business from others, and to increase the amount of government purchases," says the GSA SmartPay website.

Vendors can also compel government customers to use these cards by processing Level 3 information. The line-item detail of each transaction offers transparency and makes it easier for public offices to track and report on all procurements. Processing this data certainly helps the vendor as well, by allowing merchants to pay the lowest possible interchange rate. Working with a payment solutions provider will help vendors obtain the tools needed to easily process this kind of data.

Do vendors have to accept government charge cards?

Fri, 10 May 2013 09:10:00 GMT

Merchants who sell their goods to government organizations will often encounter buyers who wish to pay with government charge cards. Some may be wondering if they have to accept these kinds of payments, as they can often carry higher processing fees. Ultimately, it's the cost of doing business with such customers.

According to the GSA Smartpay website, "Merchants and vendors that wish to obtain a schedule contract to do business with the government are required to accept the government charge card as a method of payment for micro-purchases, generally those purchases under $3,000."

Essentially, if a vendor wants to work with a procurement specialist at a government agency, the merchant will have to accept their payment method. While some may feel that the best option is to simply remove the government from their market, that might not be a wise decision. Typically, government contracts are a reliable source of revenue, recent events notwithstanding. Eliminating that portion of a customer base could have a large impact on business revenue. Moreover, purchasing cards used in the private sector carry similarly high fees, so moving away from B2G sales won't necessarily resolve the problem.

Ultimately, vendors that wish to continue selling to government agencies can reduce the stress of high processing fees by obtaining payment solutions designed to process Level 3 data, which will help secure the lowest possible interchange rate. Moreover, as this blog recently reported, processing Level 3 data will soon be required.

Vendors may have to accept government cards if they want to sell to public organizations, but working with a payment solutions specialist will allow them to do so without putting additional stress on their business.

PCI compliance crucial for small online merchants

Thu, 09 May 2013 13:37:00 GMT

The small business owner has to wear a lot of hats and take on a tremendous amount of responsibilities. They also have to be held accountable should something go bad with their company.

Unlike massive corporations with executive teams, board members and legal councils, a small business owner is essentially on their own. Sure, they might have a group of people working for them, but when a major problem occurs, they must take on the responsibility of fixing it and, if the issue is serious, they have to suffer the consequences.

That's why it's so important for owners of small companies to ensure their organization is PCI compliant. Protecting customer information becomes even more crucial when you are the sole party responsible for ensuring that security. Those in charge of eCommerce vendors know just how vulnerable they are to online attacks and how disastrous the ramifications could be if they are indeed breached.

An article in the online publication Independent Retailer talks about this fact and suggests that small business owners conducting online transactions lack the safety blanket of big corporate retailers or B2B sales organizations.

"At the end of the day, banks can be a safety net if someone were to get your customers' credit card information," writes Mike Auger, the author of the article. "Unfortunately, there isn't a safety net if personal information is stolen from an online business."

Tokenization is essential for small business owners because it helps alleviate the burden of holding customer data. By storing information off-site, it can be protected from targeted attacks. Individuals in need of better security measures should contact a payment solutions provider to obtain the tools they need to attain PCI compliance.

Finextra analysis: Business networks could be used to facilitate B2B payments

Mon, 06 May 2013 17:26:00 GMT

Technology has changed the way businesses connect with one another. B2B networks exist in the cloud, among other platforms, and several companies are connected in this manner. It helps establish new channels for communication between various organizations in different industries and even on opposite ends of the planet, and one individual thinks payments could benefit from this as well.

In an article for Finextra, contributor Enrico Camerinelli believes that the same platform businesses use to communicate can also be used to facilitate transactions and a number of procurement processes including setting up purchase orders and invoices. This concept is loosely tied in with cCommerce, or cloud commerce, which allows for transactions to exist in an outside setting. Camerinelli's thought process is that everything is connected and that adding payments to the mix will expedite a number of processes and build operational efficiency.

"It is a fact that payments are tightly connected with the exchanges of goods or services," Camerinelli writes. "So when such exchanges are made possible through B2B platforms why should payments not use the same infrastructure? Bank accounts would simply be 'buckets' where payments transactions flow in and out according to instruction messages exchanged on the platforms."

This is another example of how technology can help improve payments, but vendors must ensure they take the same measures to give themselves the best value from each transaction. It's crucial to obtain payment solutions that help process Level 3 data. This will guarantee that vendors pay the lowest possible interchange rate.

May is National Small Business Month: What can vendors do to help?

Mon, 06 May 2013 15:06:00 GMT

While we look to large corporations as a representation of the current business landscape, they aren't the organizations that help keep our economy going. The market is fueled by small businesses, and this month it's time to recognize that fact.

May is National Small Business Month, which means a number of smart entrepreneurs are going to use this time as an opportunity to start their own companies and take their chance against a competitive and somewhat intimidating market. Small businesses can exist in literally any industry, which means that just about any vendor that sells to other companies can work with a small organization.

There are a number of things small business owners are wary of, particularly when starting out. They need to purchase materials and tools to help them run their operation, but they want to do so quickly, for as little money as possible and in a manner that keeps their personal information safe.

Vendors need to ensure they are procuring payment solutions that will cater to these needs. PCI compliance is a major issue because small companies with very little experience dealing with such matters will want to stay as far away as possible from any security risks. It will be important for vendors to use solutions like tokenization to protect this information.

Additionally, small business owners will be looking for ways to ensure payments process quickly so they can keep their finances in order and receive their purchased products as quick as possible. Obtaining purchasing cards may be the best solution for small business owners, which means vendors have to make sure they are well equipped to accept these kinds of payments without spending a tremendous amount of money on processing fees. Working with a B2B payments consultant can help vendors acquire a system that allows them to process Level 3 data on these kinds of purchases, which will guarantee they pay the lowest possible interchange rate.

B2B sales process is longer online: How the right payment solutions can help

Mon, 06 May 2013 15:01:00 GMT

The B2B sales process can be long and arduous, and the amount of effort it requires to convert leads into customers does not appear to be going down anytime soon.

In fact, a recent survey conducted by Crain's BtoB Magazine and B2B marketing company Bizo found that the sales cycle in B2B transactions has lengthened. While traditional sales in this space may have included a call or two followed by a demo and in-person transaction, the addition of the online element has introduced numerous new channels and have made the process convoluted.

Bob Felsenthal, VP and publisher at Crain's BtoB Magazine, commented on the results in a press release and indicated that while technology has helped the process in numerous ways, it has also increased the need for marketers and sales associates to adjust the way they do business.

"The survey results reaffirm that most B2B marketers still need to improve their online marketing mix to meet the needs of the sales pipeline, as over half stated," Felsenthal said. "However, the report also confirms that technology continues to improve the ability to identify the right buyers and measure the results of marketing initiatives."

So how do payments factor into this?

The increasingly high competition in the online marketplace is having a major effect on organizations in the B2B sector. More procurement specialists have ditched traditional means of obtaining new products and services in order to search online. The reason it's taking so long for B2B companies to close deals is because prospects have so many options at their disposal now. Vendors have to differentiate themselves from their competitors, and the best way they can do that is through payment processing.

Obtaining payment solutions to ensure the security of customer information is crucial. PCI compliance is essential and companies that fail to follow payment security standards are going to have an even harder time attracting customers. A procurement specialist is always going to have the security of their company's information as a top priority, so if they find three similar vendors online and only one is PCI compliant that's the organization they will likely buy from.

Obtaining a tokenization solution is ideal and will help an online organization with its marketing efforts because it will show prospects that they have customer data security in their best interests. By storing information offsite, businesses can guarantee that sensitive information will be protected from targeted attacks, which will speed up the process by quickly alleviating any security concerns.

Following a long sales process, vendors must help themselves as well. By accepting purchasing cards, they can expedite the payment process and ensure transactions are finalized quickly. This will help after a long sales procedure because once a deal does go through, both parties will want to receive their product and their cash as soon as possible. However, these kinds of cards tend to cost more to process, so obtaining payment solutions designed to reduce transaction fees is important. Implementing a system that can process Level 3 data with line item detail will speed up payments, but it will also help the vendor because it will guarantee they pay the lowest possible interchange rate.

eCommerce vendors change offerings to include B2B sales

Wed, 01 May 2013 07:33:00 GMT

The growing trend in B2B eCommerce has mostly been fueled by the act of vendors traditionally selling to other businesses finally implementing online services. However, that's not the only source for the market's growth. Traditional online sales companies have increasingly decided to start selling to businesses in an effort to expand their outreach.

Tech-savvy entrepreneurs discovered the benefits of eCommerce long before their B2B counterparts, but they primarily sold to consumers. The impact of online sales is one that they are all-too familiar with, so it was only natural that they began to sell to other types of customers. Because the lines between many business and consumer products are blurry, it's not much of a stretch for a company to change its product offering and tweak its marketing strategy to reach procurement specialists in addition to standard consumers.

According to an article in the Economic Times, this is a major trend overseas, but it could soon be making its way to the United States. However, while expanding catalogs to include items primarily used in a business setting is a good start, there are some things these types of organizations have to be cognizant of.

Selling to consumers is much different than selling to businesses. This blog has listed the differences between B2C and B2B sales in the past, and those differences may be felt strongest in an online setting. It's up to vendors to find the payment solutions designed to process B2B transactions online.

Implementing a payment gateway to process transactions made on the B2C side is something online vendors were tasked with when they began their operations. Now, if they are transitioning to B2B payments, companies must find a new gateway that allows them to process payments made with a business purchasing card.

This gateway must be able to process Level 3 data with line item detail. By doing so, organizations can ensure they pay the lowest possible interchange rate.

Low quarterly spending shows why vendors must obtain proper payment solutions

Wed, 01 May 2013 07:30:00 GMT

Drastic changes in spending can impact the way vendors operate and generate a number of new needs on the payment processing side. For organizations selling to businesses and government offices, the most recent quarterly numbers weren't pretty, but vendors shouldn't fret. Instead, this is an opportunity for organizations to invest in payment solutions that allow them to stand out in front of the competition.

Last Friday, the Commerce Department's Bureau of Economic Analysis revealed that real gross domestic product (GDP) in the U.S. grew at a 2.5 percent annual rate in the first quarter of 2013. That number fell below expectations, as some analysts and economists had projected GDP growth to surpass 3 percent. While consumer spending was strong, much of the disappointment stemmed from lackluster performance in both the business and government sector.

Of course, government spending cuts aren't news at this point. The sequester has dominated headlines for a number of months now, with government organizations finding ways to reduce spending in an effort to save money. According to the report, federal government spending dropped 8.4 percent in the quarter, which went a long way toward preventing overall GDP growth to reach the number many people wanted to see.

Meanwhile, business spending posted a respectable number, but it too fell behind consumer activity. Today, companies are still cautious about investments and procurement specialists have to be wary of every single purchase they make.

So what does this mean for vendors? It shows that the market is only getting tighter if there are less potential customers out in the open. It means the competition is going to continue to rise and businesses that cannot find solutions to accommodate their customers will lose out to other vendors. Security is a major concern among government officials and executives alike, so PCI compliance is a must.

Working with a payment solutions provider will help companies obtain the tools needed to be PCI compliant and provide customers with the confidence they need to do business with their organization.

More people agree: Don't store customer data internally

Mon, 29 Apr 2013 17:38:00 GMT

It seems that everyone's talking about payment security and PCI compliance these days. It's such a crucial factor for organizations because in today's uncertain economy, everyone is being more careful with their money. Businesses won't work with vendors if they feel their funds aren't safe in their hands.

It seems that not only are more people agreeing about the importance of security, they are also coming to an agreement as to how to ensure customer information is protected. An article in the Globe and Mail lists ten ways to tighten payment security, and almost all of them tie into what we believe at VantageB2B - keeping information away from internal systems.

The piece talks about the importance of not storing sensitive information in a way that it can be the victim of a targeted attack. One way to do this is by not storing credit card numbers.

"To avoid one of the biggest PCI compliance risks, do everything in your power to not store credit cards numbers," the article says. "Look for a payments provider whose platform is designed so credit card information is never stored at your business site or directly on your business software."

Tokenization is the ideal solution here. Suppose you are a dealer of business technology systems and your customers are paying with purchasing cards. Don't store that information onsite. It is vulnerable and, if it is compromised, you could suffer from a severe reputational hit that will not only cause you to lose the business of that customer, but likely others as well.

Tokenization will store that information offsite and ensure that it is protected from a targeted attack. This will go a long way toward maintaining PCI compliance.

Growing sentiment suggests B2B vendors must continue shift to online operations

Fri, 26 Apr 2013 10:28:00 GMT

It's time for B2B vendors to change the way they attract, interact with and sell to customers.

That's a sentiment shared by a number of industry professionals and analysts, who have seen a massive change in the way procurement specialists prefer to deal with vendors. B2B sales and marketing are increasingly Web-based, mainly due to attitude adjustments from the companies buying products and services.

Earlier this week, an article in the online publication Manufacturing.net examined the need for organizations in the B2B sphere to move more of their operations - particularly those pertaining to customer interactions - online. Bob Barr, the article's author, calls this a digital strategy and says vendors that don't keep up with trends such as eCommerce will be left behind.

"While B2B organizations were aligned by product or channel in the past, they're now run by the customer, who is now at the center of delivery and driving sales," Barr wrote. "The question for manufacturers is now how to leverage sales and online platforms in response to what they do in the business. In order to drive success, organizational change management in the effort to spur evolution of the traditional sales channel and product-focused systems must take place."

Essentially, vendors selling to other businesses have to ditch their traditional strategies in favor of online operations. This includes all aspects of the sale, meaning that payment processing must be considered an online practice too. Obtaining a payment gateway that processes B2B payments is required, because standard gateways won't cut it. Businesses need a solution that can process Level 3 data with line item detail, as this will ensure that they pay the lowest possible interchange rate.

What's the difference between payment data levels?

Wed, 24 Apr 2013 16:57:00 GMT

This blog has talked a lot about Level 3 interchange and has given a number of reasons why processing this information is such a smart move for merchant accounts. However, deductive reasoning will tell you that the interchange levels don't start at three. Now, you may be wondering, what the deal is with Level 1 and Level 2 interchange and how they differ from the all-important Level 3.

The major differences lie in the type of information that gets submitted with each payment. Because purchasing card payments cost vendors more to process, those that offer more information are able to receive a reduced fee. So, if a vendor is to accept a p card payment and process Level 1 data, it will receive the benefits of accepting this method - such as quick processing - but it will pay heavy fees. Level 2 data alleviates some of that, but still requires merchants to pay a hefty rate, and Level 3 reduces the charge by an even greater amount.

So, what's the difference between Level 2 and Level 3? The answer is the amount of information and the type of information that gets submitted by the merchant. Level 3 data includes the most information and breaks down a transaction by line-item detail. This is valuable information because it increases transparency, showing every single item that was purchased and how much was spent on each.

One difference to keep in mind is tax rates. While Visa and MasterCard require a tax rate over 0 percent for Level 2 processing, that's not the case with Level 3. Organizations can process tax-exempt transactions and still pay Level 3 interchange rates as long as they provide the necessary information, such as line-item detail.

Working with a payment solutions provider will help vendors gain a better understanding of these differences and obtain the tools needed to process payments with Level 3 data.

Regulators continue to show support for the timely payments of small businesses

Tue, 23 Apr 2013 17:25:00 GMT

Major efforts have been made in recent years that would eliminate the risk of the government missing payments to small business vendors. There was once a time when government organizations were viewed as the "bullies on the block" treating the vendors and organizations they partnered with however they pleased. This was, in part, one of the factors that led to the financial crisis of five years ago.

Instead of government departments taking three months, a year or even longer than that to finally getting around to making payments, vendors are receiving more respect from regulators, who are now telling public organizations they must pay their providers in a timely fashion as to not hurt their economic viability.

This initiative is being seen around the world. Just last week, the South African government released a statement declaring its commitment to seeing vendors providing products and services to government offices receive payments on time.

"[The] government has prioritized timeous payment of services by government departments, as part of supporting small businesses which are important for job creation and broad-based black economic empowerment," said a statement issued by the Government Communication and Information System (GCIS) last Friday.

Here in the United States, this effort is just as important, but vendors can also help their own efforts by implementing payment solutions designed to improve the transactional process. By obtaining systems that can speed up processing, vendors can ensure their clients in the public sector receive the customer service they need. However, it is important that these solutions process level 3 data because it will guarantee that the vendor pays the lowest possible interchange rate.

Working with a provider of these solutions will help companies acquire the tools they need to quickly process government payments.

Small business owner shares experience evaluating payment solutions

Tue, 23 Apr 2013 09:10:00 GMT

Small business owners - particularly those with companies in their infancy phase, have many tough decisions to make. The level of care and thoughtfulness that must go into any type of business investment is very high. The wrong decision can dramatically compromise an organization's long-term economic viability.

The process of evaluating vendors, asking important questions and considering a substantial amount of factors must be carried out before every expenditure. This ranges from stationary to large-scale technology. Because businesses live and die on their ability make money, perhaps no investment is more important than the payment solution used to process transactions. Without yielding the highest possible value from each sale, businesses will never reach their money-making potential.

An article in the New York Times blog featured a small business owner and his search for a payment processing solution that would allow him to pay the lowest possible interchange rate. Paul Downs, the owner who wrote the guest post, described his trials and tribulations and shared a number of frustrating experiences.

"Like many small-business owners," he wrote, "I have plenty of things to keep me busy, so my search was an on again/off again thing. As it progressed, I found that the more carefully I looked at the terms I was agreeing to, the less I liked them."

Downs' experience isn't uncommon. Because this decision is so important, it's vital to take proper steps to ensure the right choice is being made. Vendors that conduct B2B sales have to be particularly vigilant, given the nature of the payments they tend to process. Working with a B2B payments consultant and solutions provider like Vantage B2B will help ensure vendors obtain the right systems for their needs without compromising any important factors such as PCI compliance and interchange rate fees.

Payment solutions needed to address growing issues in B2B payments

Thu, 18 Apr 2013 18:57:00 GMT

B2B sales are not to be handled lightly. Meaning, organizations selling to other companies have a tremendous number of factors to weigh before conducting each transaction. The practice is moving into new areas such as eCommerce. Moreover, at many organizations, the process is very complex.

According to a press release from Syncada - a Visa partner that provides solutions to improve purchasing supply chain efficiency - it's important to consider all important components of a transaction and find ways to make them more efficient. As more factors weigh on the process, this is more crucial than ever.

"The global nature of business-to-business (B2B) payments requires comprehensive solutions that adapt to a number of regions, systems, and regulations," the release reads. "Some expense categories, like freight payment, present complex challenges, such as comprehensive pre-audit requirements, summary invoices, and accessorial reporting."

Syncada's solution is designed to make the payment process easier. Much like our partners Bill.com, Syncada will replace inefficient processes on both the accounts receivable and accounts payable side of the transaction. Taking advantage of technology, a number of tasks are streamlined, allowing both parties to obtain a greater value from each transaction.

This solution helps, there are more ways the payment process can be improved. Vendors can receive greater value if they follow additional steps - namely processing level 3 data.

Technology such as Syncada and Bill.com is allowing the B2B payments process to evolve, which will likely result in additional business down the road. For example, businesses on the AP side that have implemented this service will likely have greater power as it pertains to the way they pay and the vendors they wish to work with. It's up to the merchant to keep up. Offering to process level 3 data can attract customers, while helping maximize the value of each sale.