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B2B Payment Gateway Topics
B2B payment gateway FAQ
What are Payment Gateways?
A payment gateway automates the payment transaction between a seller and buyer by securely transmitting payment information between both financial institutions. An eCommerce business relies on a payment gateway to protect customer’s sensitive financial information. Payment gateways integrate with your sales platform to allow a business to accept payment via a variety of means including credit cards or other forms of online payment and use encryption to protect sensitive data as it’s transmitted.
Will payment gateway software help my B2B business?
Most major eCommerce platforms and payment gateways will have plug-ins and extensions to make integration easier and major B2B eCommerce platforms make it clear which payment gateways will easily integrate with their software.
As a B2B business, you can choose between two types of payment gateways, hosted or integrated. Hosted payment gateways are easy to install and manage. With hosted products, all compliance and data security becomes the responsibility of the payment gateway, which can be a time and money saver. However, a hosted option will redirect your customers away from your business’ website and to a separate payment processing page.
An integrated payment gateway requires more effort to implement but customer’s stay on your site for payment which may lead to higher conversion rates, less confusion about payment, etc. An integrated payment gateway can be limited by which eCommerce tools your platforms integrate with and will often require your business to have a merchant account to accept credit card payments.
Payment gateways offer a level of protection in that they have the ability to identify fraudulent activity and ensure safe encryption of sensitive information.
Ultimately, having payment gateway software helps your B2B business to accept and process online payments in multiple currencies without risking the security of payment information. It also helps with quickly handling refunds or returns.
Payment gateway software often offers a database of customer transactions to assist with tracking invoices, generating reports, and predicting cash flow, helping your businesses with forecasting.
What does payment gateway software do?
Payment gateways provide payment processing tools allowing a buyer to make payment via credit card or bank account. With the variety of payment options available, this can be done in a variety of ways including online payment systems or even an integrated physical credit card terminal, providing businesses that operate both on a physical premises and online with means to accept payments using one tool.
The software can provide data on each transaction made through the platform, allowing for a business to track how and where money is entering and leaving the business, to predict future sales performance.
The software provides compliance around the security of sensitive data by enforcing strict security requirements and fraud protection.
Additionally, payment gateways support multiple languages and currencies, so as a business scales, it can receive payments in other currencies. Additional benefits like accounting software integration makes it easy to track incoming and outgoing finances, as well as track invoices and other financial data and features like recurring billing allows a business to set up subscription style or direct debit features.
Potential issues with B2B payment gateway software.
Integration with your eCommerce platform is likely to be the biggest deciding factor in choosing your payment gateway software. It’s also important to consider whether or not your business uses a subscription or direct debit system to manage recurring payments from customers.
Think about which foreign currencies (if any) your business may need to accept. Some payment gateways are limited by the countries and currencies they support. Lastly, payment gateways vary in the types of transaction fees or processing fees they charge for each transaction. Sometimes it’s a flat rate while others require a small percentage, determined by the amount of transactions processed. As expected, small businesses usually pay a lower rate than enterprise-level businesses.
What’s the best payment gateway software for B2B eCommerce?
The B2BEA has a list of approved vendors, specifically for the B2B niche. Visit our partners on this page.
Payment gateway trends for B2B eCommerce.
Emerging technologies such as mobile integrations (shopping via mobile phone) and the rise of blockchain as a secure means of transferring funds and data online are seeing payment gateways adopting new technologies. Some even allow payment in Bitcoin and other cryptocurrencies.
Discover the latest B2B industry trends and insights to learn more.