B2B Companies Should Accept Credit Cards to Increase Revenue.

B2B Companies Should Accept Credit Cards to Increase Revenue.

B2B companies do business with other businesses. Their primary form of accepting payment from their clients is by checks. When they receive a check, they make copies to be filed away, and then gather the day’s or week’s checks and drop them off at the bank. Some B2B companies that have large amounts of cash and checks coming in everyday have a pick up service that picks up cash and checks in lock boxes and drops them off at the bank. There is a lot of time involved in filing, and picking up and dropping off and banking cash and checks. There are also fees charged by pickup companies. The time and fees all amount to costs that could be avoided if a B2B company starts to accept credit cards.

Here are 5 good reasons why B2B companies should accept credit cards.

1. B2B companies can increase business and boost revenues if they accept credit cards.

With increased technology come faster and more secure electronic payment standards. If you as a B2B company are still only accepting checks, you are missing out on a lot of business and revenue. B2B practices have started to go the way of B2C when it comes to client order processes and payments as well. B2B clients want access to online ordering, checkout and payment systems just like B2C online marketplaces or online stores. Clients want simpler and faster buying and payment systems. Therefore, accepting credit cards presents just that opportunity. Accept credit cards and your payment network gets simplified and much faster than traditional checks. Payments get credited directly into your bank account with full, details transaction reports of where the money originated from.

Even the Federal Government now requires its vendors to accept credit cards as it reduces paperwork and speeds up payments which in turn speeds up procurement.

2. Speedier payments and more cash in hand.

When you only accept check payments, there is a lot of time wasted while you wait for the check in the mail, then wait to bank it in, and then it may take another day or so for the check to clear. If the check does not clear, there are fees involved, as well as more delays in getting your money. If you are on a tight budget, the NSF check may cause your other scheduled payments to go unpaid and cause more fees and more loss of time.

If you accept credit cards, the payment is charged to your client’s card right away and gets credited into your bank account in 2 business days. Your wait for your money just went from 30 to 45 days using checks to 2 or 3 days using credit cards. There is no need to extend credit to your clients anymore. As your client used a credit card, they have time to pay their credit card also. So, it’s a win win situation for both you and your clients. You get paid faster and they still get their credit line. What’s more, your client may get reward points from their card issuer or bank as they spend more money on purchasing.

Related: ACH, Paper Checks, eChecks, Electronic Payments! Confused Yet?

3. It is more secure when you accept credit cards.

Some of your clients may not wish to give out their banking information that comes with a check. Maybe you are a new business or maybe your client just likes their privacy. Whatever the situation, a credit card makes it more secure in that sense to make as well as get payment. At times, when trying to get a new deal, it helps if you accept credit cards. It makes the transaction faster and more secure if you are at your client’s office and can swipe a credit card right away with a mobile swiper. You get paid right away and the client’s credit card information stays private.

4. It makes accounting and reporting easier.

With your credit card merchant account, you also get a virtual terminal that you could use to run one-time credit card payments or schedule multiple payments over time. Your virtual terminal gives you detailed reporting of all transactions. You get to see weekly, bi-weekly or monthly reports of incoming funds that allow you to forecast spending as well as profits. Detailed reporting also makes accounting a breeze when companies like Pherrus are going over the books. You can track all payment details at the click of a mouse button. An added time-saving feature of a virtual terminal is the ability to export transaction and payment data in text files. Exported text files can then easily be imported into your business accounting software making reconciliation fast, easy and accurate as there is no more manual data entry involved.

5. Better chance of winning more customers.

Electronic payments are mainstream now and everyone just expects businesses to accept credit cards. When you are trying to sign up new clients and tell them that you only accept checks, they may look at you funny. They may ask why are you still only accepting checks when there are so many faster, more secure ways of accepting payments. What kind of a first impression would that give your new client? They may see your business as slow and antiquated, not up to date, and not progressive or up to industry standards. Most businesses think that as technology advances, so must business processes. You may find it increasingly difficult to continue to get new clients if you continue accepting only checks and have no options for other forms of electronic payments.

Related: Best Ways to Accept Payments From Your Customers

The more payment options you have for your clients to pay you, the easier it is to do business and also to win over new clients. Just the simple convenience factor when you accept credit cards is often enough to sign up more clients.

Contact Us for more information on Credit Card Processing, or eChecks and ACH Transactions. Or take us up on our FREE Merchant Account Analysis offer. We’ll analyze your merchant account rates and let you know how to Save! If you are ready, you may be able to Switch and Save!