The pandemic changed the business world forever. That includes the surge in credit card usage among B2B companies. Lockdowns made checks an impractical payment method, encouraging businesses to embrace the convenience of credit card transactions. Consequently, card usage shot up in March 2020 and again in December 2021.
This isn’t a passing fad as check usage continues to fade. However, it isn’t extinct. And if your B2B company relies heavily on check usage, you’re suppressing cash flow, creating more work for your staff, and leaving you and your customers vulnerable to fraud.
This blog explains how increasing card acceptance and usage can be beneficial to you as well as your customers.
1) Faster Payments
The quicker you get paid, the quicker you get the capital required to grow your company. You don’t have time to wait for a check to arrive in your mailbox, especially if holidays, vacations, and weekends get in the way. Checks need time to process and clear, which is why accepting them leads to a high DSO (Days Sales Outstanding) that puts a crimp on cash flow.
The money reaches your account much faster because credit cards process quicker than paper checks. Credit cards also remove friction from the payment process because customers can leverage features like AutoPay and pay balances by simply clicking a button, especially if your accounts receivable (AR) process is automated and enables buyers to set up and manage their own secure digital payment wallets.
2) Safer Payment Methods
Check fraud continues to increase because it’s easy for scammers and criminals to swipe a check out of a mailbox, erase the information and amount, and make it out to themselves for as much as they want. It’s called check washing. And it’s a big reason why financial institutions reported a 12% increase in losses from check fraud in 2023.
Credit cards are a far more secure method of payment. They are encrypted to reduce the risk of fraud and they’re easy to track, especially if your customers regularly check their statements and balance, making it simple to spot and report unauthorized use. Some banks suspend card usage and reach out to a cardholder if a purchase looks suspicious, a level of protection not provided when paying by check. Using credit cards gives your buyers peace of mind knowing their financial data is secure while ensuring your payment won’t fall into the wrong hands.
3) Eases Financial Burden
Owning a business gives you the opportunity to see things through the eyes of your customers. You know how stressful it can be each month to pay vendors and balance the books.
You get paid immediately when your customer uses a credit card. The customer, however, doesn’t have to pay their credit card bill until the end of a billing cycle that may be more than a month away. That gives them time to cover their expenses while making sure they’re still paying you and maintaining solid credit. Using a credit card also helps your customers earn rewards such as discounts, hotel points, airline miles, and cash back.
4) Less Stress
You and your staff have enough to do without chasing late-paying customers. Making frequent calls isn’t just stressful and time-consuming but can also damage the buyer-seller relationship.
Credit cards enable you and your customer to set up AutoPay and simply draft recurring fees from the card customers stored in a digital wallet. You’ll get paid on time and your customers can focus on their business without accruing late fees or remembering due dates.
AR automation also gives you the opportunity to set threshold amounts that can be customized for each customer and invoice.
5) More Options
Some businesses, or to be more specific, the people who run them, simply don’t want to pay by check. They want options.
Offering your customers the ability to pay by credit card is an effective way to show you are aware of their needs and preferences and are doing everything in your power to make the billing and payment process as seamless as possible.
Accepting credit cards is easy with Bill360. Our seamless, all-in-one platform automates your AR process, reconciles invoices, and processes payments, resulting in stronger cash flow while saving you up to $2,500 in processing fees and making it easier than ever for your customers to pay you on time.
Experience Bill360 for yourself by customizing your own demo video and seeing how our proprietary platform resolves the pain points specific to your B2B company.
