Why You Should Accept Credit Cards for B2B Transactions

Sep 08, 2016

The greatly high average credit card debt per household tells just how people love using these cards to carry out transactions. There is a lot of speed, convenience and security with the use of these plastics for transactions.

Even though merchants also enjoy the same benefits as households when they use credit cards, a good majority are still slow to accept credit card payments from their B2B customers. Here are some of the reasons which justify that apparent reluctance.

  • Card-based dealings carry additional charges. The fees typically range from 2 – 5 percent.
  • Potential damages are high. Chances for fraud within the B2B ecosystem are far less. However, since transactions in this community are often high volume or involve big-ticket items, the potential loss in the unlikely event of fraud can be extremely damaging to the business.

Well, it’s high time this scenario changed. Despite these potential, drawbacks, there are compelling reasons why you should start accepting credit cards from your B2B clientele.

  • A much bigger market.

The majority of your clients prefer doing business using these cards. Accepting B2B card payments helps you connect directly to these clients. Smaller businesses and startups in particular normally tend to rely greatly on corporate plastic.

  • Greater total sales volume.

Credit cards admittedly comprise only a small fraction of the B2B sales. However, the total sales volume is quite huge. Forrester Research reported that online B2B sales in 2015 amounted to $780 billion. The researcher expects that number to increase to $1.13 trillion by 2020. That only means that there is a great potential in the industry and you can start tapping into that revenue right now by accepting credit card transaction from your B2B clients.

  • Automation

Credit cards allow for payment integration. You can have all your sales data automatically synched with your favorite accounting ERP and CRM platforms. This is something you should be cheery about, especially now that you can open a tech support merchant account with platforms like emerchantbroker.com.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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