B2B Payments: Definition, Costs, Best Processors (2024)

Business-to-business (B2B) payment processing companies handle transactions between businesses, and the best options help streamline the process with recurring invoicing, security tools and, in some cases, approval workflow automation. Since B2B payments can be larger than typical business-to-consumer (B2C) transactions, some B2B payment processing companies also extend lower processing rates.

Many credit card processing companies facilitate both B2B and B2C transactions, while others specialize in B2B payment processing. If your business sells goods or services to both consumers and other businesses, using the same processor for both types of transactions can help simplify the process.

Here are our picks for the best B2B payment processors.

B2B payments refer to transactions between businesses. Since these transaction amounts can be large and the exchange may involve contracts, sales aren’t usually completed as instantaneously as they are for B2C (business-to-consumer) companies. In contrast to B2C payments, which are typically completed in-store at a point-of-sale (POS) register or online through an e-commerce site, B2B payments are often sent via invoice and may be recurring. In general, the business on the purchasing end can choose to pay invoices with a check, ACH transfer or card.

B2B payment processing costs include transaction fees and may also come with a subscription fee. The two main types of B2B payment processing models are flat-rate and interchange-plus.

Flat-rate payment processing companies charge the same flat rate per transaction, regardless of interchange rates, and companies that offer both B2C and B2B payment processing services may charge the same rates for each kind of transaction. For example, Stripe charges 2.9% plus 30 cents per online transaction, regardless of the card’s interchange rate and which type of business you run.

On the other hand, interchange-plus and subscription-based payment processors, which pass interchange savings to the merchant, can usually offer a bit more flexibility. Under these pricing models, B2B businesses may be able to access lower interchange fees if their transactions meet stricter level 2 or 3 credit card processing requirements — e.g., B2B transactions made using a commercial credit card that collect more customer information than level 1 processing.

To pick the best B2B payment processing company for your business, consider the following factors.

Payment processing cost

How much you pay to process B2B payments largely depends on your payment processing company’s pricing model. Flat-rate processing is easy to understand, but can be expensive if you process a high volume of transactions. Alternatively, interchange-plus pricing can be more cost-effective, but less predictable.

For example, online transactions processed through Helcim, an interchange-plus processor, cost 2.49% plus 25 cents on average, while online transactions processed through Square, a flat-rate processor, cost 2.9% plus 30 cents each. Subscription-based models are another option that charge lower markups in exchange for a monthly fee, making them a good solution for higher-volume businesses.

Additionally, consider which kinds of payments you accept most frequently. If you rarely accept credit card payments, maybe ACH processing rates are what really matters. And if you require subscription billing or recurring invoicing tools, check to see whether they’re built-in or cost extra.

Accepted payment types

Make sure your B2B payment processing company accepts all the payment types your clients typically use. Those could include credit cards, debit cards, ACH transfers, wire transfers, cash and check payments.

Industry specificity

If your business processes a high volume of transactions and mainly works with other businesses, instead of consumers, an industry-specific B2B product, like Paystand, can help you implement invoicing workflows and save on processing fees. If your clients include both businesses and consumers, though, a more generalized payment processor, like Square or Stripe, could be a better option.

Invoicing tools

Since B2B payments are often larger than typical B2C transactions, it’s common to send invoices and offer clients a payment plan. If this is the case for your business, your payment processor should double as an invoicing software provider. Recurring invoicing and subscription tools can help speed up the process and ensure you’re paid on time.

Integrations

At a minimum, your B2B payment solution should integrate with your accounting software so you don’t have to manually record every invoice or transaction. By syncing automatically, your accounting software can use payment data to generate reports and provide accurate, up-to-date business insights. If you use a POS system for in-person transactions or an e-commerce platform for online transactions, make sure your B2B payment processor also integrates with those. Subscribing to two separate payment processing solutions for online and in-person transactions can cause unnecessary complications.