Accepting credit card payments can boost business to business trade
If you are running a company which does business with other businesses and yet is still not accepting credit cards, you are prematurely cutting out a significant portion of your market before you've even started. In the highly digital and internet-based world of today, options for electronic payments via credit cards and online accounts are essentially the norm, with traditional cash and personal check payments becoming more and more out of date. With even the federal government now requiring that vendors accept credit card payments in order to reduce paperwork, it's not an unreasonable request for a company to expect another to be able to accept an electronic method of payment. If you're thinking about setting up your B2B company to accept credit card payments from other companies, there are a number of different benefits.
Less Waiting Time
If you only accept check payments, there's often a waiting time for the check to clear. With credit card acceptance, there is no long 30-45 day wait for payment and no need to extend credit to customers making large purchases from you. Instead, payment will occur at the point of purchase, and will immediately put cash flow into your company's account.
New customers often prefer to pay via an electronic payment method such as a credit card or online payment account thanks to the security that it includes. Some customers can be wary about having to disclose too much financial information to a new transaction partner, so a credit card tool comes in handy as it provides customers with a sense of protection and security and can often be the deciding factor that closes a deal.
With electronic payment methods, you'll find that your business accounting can be recorded in a far easier manner. Electronic payments allow a business to immediately track all payments made, by whom they were made, what time they were made, and for how much. This can be transferred easily straight from your business account and over to your accounting records or software, making both business accounting and tax records a lot simpler to carry out.
Less Chance of Losing Custom
With electronic payments being the norm in this day and age, it is no surprise that many customers will be wary about doing business with a company that does not accept them. Not only does this put many customers off since there is less security and convenience, it also makes your company look like it's not moving with the times and is failing to be up to date. By not accepting credit card payments, you are putting yourself in a situation where you could easily lose your clients and customers to competitors that do. Essentially, this means that you might have to work a lot harder than necessary to market your products and services and convince clients to make a purchase without having an option for electronic payment.
Wider Range of Payment Options
B2B customers are no different from consumers who prefer to have a range of options to choose from when it comes to making a payment for a purchase. Like regular consumers, B2B customers also tend to choose those options which provide them with the most security and convenience. Accepting credit card payments is a convenient option for both parties involved, as it provides an immediate transaction at the point of purchase. If you sell your products and services to B2B customers online, you should also strongly consider allowing credit card payments and accepting PayPal on your site. Some credit card merchants also provide mobile phone reader payments, which can be used for even more convenience.
What to Expect
Accepting credit cards should not be a step that takes up a lot of your time and effort. However, there are some costs to be taken into consideration, such as the buying or leasing of credit card reader equipment, along with a fee that will be charged by your merchant per transaction. The fee amount will depend on a number of different factors such as the industry of your business and how long you have been operating, as well as the processing company that you choose. This is why it's important that you carefully evaluate different credit card processing companies in order to ensure that you choose one which will best meet your needs as well as being cost effective.
Why do you think that accepting credit cards is important for B2B companies? We'd love to hear your opinions on this – leave your response in the comments section below.