B2B Credit Card Processing (Business to Business)
B2B Credit Card Processing solutions are probably the single most critical processing category, which if done incorrectly, could have a profound negative impact on a business. This is because not all B2B Credit Card Processing solutions are equal. A good processing partner will understand the complexity and detail required to configure an appropriate solution.
For most of the examples we provide, you can pretty easily distinguish which of the basic merchant account types might serve as the foundation of a rate structure. For example, we can be reasonably assured that a restaurant or salon will be able to swipe a credit card as the customer is present, with card in hand. This reduces the risk of fraud and the merchant account type accommodates for the appropriate discount as part of the rate structure. Unfortunately, you cannot make such assumptions about a B2B Credit Card Processing Solution. Generally, we’d seek a solution such as Interchange Pass Through which provide the lowest rates available as is the case with large retailers.
What you should know about B2B Credit Card Processing
One element that has to be determined is what kind of merchant account will act as a foundation for a B2B credit card processing structure. Are the transactions going to be “swiped” with the customers and their card present, or will these charges be made over the phone? This has a rate implication as swiped transactions generally qualify for a discount.
The payment method is important here. Business credit cards and government credit cards are often handled differently and may not quality for what we’d consider a typical “swiped” retail purchase. Why? Because many businesses and government cards pay the balance in full each month so they don’t incur interest. And since the banks don’t earn the usual interest, they often charge a premium which is reflected in your processing rate tier.
Also, what is pertinent about the characteristics of the charges? Are these high volume and high cost transactions? If so, a poorly configured solution may result in longer than usual transaction approval periods which may delay the transfer of funds to the merchants’ bank account. Alternatively, high fees might be applied to these transactions as the processing company may consider these “high risk.”
1st National Payment Solutions excel in regard to the appropriate configuration for B2B merchant accounts. Our Class A banks and processors have efficient, effective and qualified underwriting and risk management departments to ensure the merchant account is set up correctly with regard to monthly volumes, transaction sizes and card types.
Interested in what 1st National can do for your business? Give us a call or complete our “quick quote” request. Between our well rounded inventory, Class A Settlement Banks & Processors, and a full suite of Merchant services, our talented agents are sure to be of value.