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B2B Credit Card Processing

Reduced interchange is just one of the many perks of accepting commercial cards at your business. 

Business-to-business (B2B) credit card processing is a capability companies adopt so that they can easily accept commercial cards, which fall into three categories:

  • Business cards are usually issued by small businesses and hold the individual cardholder liable, or jointly liable as a personal guarantor, for purchases.
  • Corporate cards are issued by large businesses, who are usually liable for purchases.
  • Purchasing cards, also known as procurement cards or P-cards, are issued by a variety of businesses. They replace purchase orders, simplifying the buying and invoicing processes.

Employees can use all three online, for MO/TO payments or in store for business-related purchases in line with spending limits and other restrictions set by the employer. But they’re processed differently than traditional consumer cards.

Enhanced Data

Credit card brands classify transactions according to data level, which refers to the amount of information a business provides with a transaction. A transaction with the least amount of details would qualify as data level 1, while a transaction with the most details would qualify as data level 3. Details include item descriptions, product codes, destination zip codes, tax indicators and more. Level 2 and 3 data is called “enhanced data” and characterizes B2B transactions. The higher the data level, the lower the interchange rate, so accepting B2B payments can be economical if processed correctly. If a merchant accepts a level 2 or 3 commercial payment and sends transaction information without the enhanced data, it can downgrade to level 1 (the level of consumer card transactions) and catch the higher rate.

B2B vs. B2C

B2B payments are less likely to result in chargebacks because businesses are typically making purchases for recurring needs instead of impulsive wants (associated with business-to-consumer sales). Many B2B transactions are high-ticket bulk orders exchanged between businesses with established relationships. While B2C merchants offer fixed prices to broad markets, B2B merchants usually offer buyer-specific prices to niche markets.

A merchant’s website design is most effective when it adapts for B2B logins so that buyers can search for product IDs instead of descriptions, contact sellers, alter orders, keep payment information on file and make purchases quickly. B2B buyers are professionals, so creating an efficient shopping experience for them is an important factor for B2B sellers. In addition to commercial credit cards, eChecks are prevalent in the B2B arena.

How We Can Help

Having one versatile, easy-to-use payment solution is the key to not only accepting payments from a variety of entities at the most affordable rates, but also to making the most of online reports that can produce specific insights about different merchant categories to help guide business decisions. BankCard USA can deck out your POS terminal and payment gateway with the right tools to navigate the often fast-paced B2B landscape. Whether you collect business payments on a recurring billing cycle or in single transactions, we can customize a suite of financial services for your business at a competitive price.