B2B Payment Network | B2B Finance Glossary
What is a B2B Payment Network?
A B2B payment network is designed to facilitate B2B transactions between businesses and their customers (in this case, other businesses). “B2B” means business-to-business and refers to payments from one business to another. These transactions are for goods and services that support optimizing business operations and other key functionalities such as HR, marketing, customer support, supply chain, finance, etc.
B2B payment networks help transfer funds from the customer’s business to the merchant’s. This can be done through credit card networks or other forms of digital B2B payment networks.
What’s Wrong With Many B2B Payment Solutions that Exist Today?
Even though digital payments are becoming increasingly popular for consumer payments, B2B payments are still stuck in the dark ages, with over 40% processed via paper checks. Moreover, check payments require finance teams to pay for lockbox services. These services can be quite costly; at the same time, lockboxes are also inconvenient when it comes to collecting revenue efficiently since they depend on bank employees who sort and deposit checks manually.
On top of that, repetitive, paper-based payment processes can be hard on finance teams: they can lower morale and create burnout and divert time away from strategic planning. They’re also more expensive than automated solutions, subject to human error, and contribute to extending DSO time.
While credit card payments seem like a viable option for B2B payments, they also have their downsides: today, credit card networks require merchants to relinquish 3.5% of every transaction processed via a credit card payment. That means that any time a credit card is used for a B2B payment, a merchant loses 3.5% of its hard-earned revenue.
AR teams need B2B payment networks that are paperless and feeless and that allow for the seamless transfer of funds between customers and merchants.
What are the Benefits of B2B Payment Networks?
B2B payment networks offer digital solutions that help AR departments save time on manual processes through automation. They also help finance teams get their money faster by making it easier for customers to pay instantly online.
The Paystand Bank Network is a direct-bank B2B payment network facilitating efficient, zero-fee transactions. The network uses digital payment rails to give businesses access to real-time fund transfers and automated payment settlement. It also supports secure one-off and recurring bank payments that reduce chargeback requests.
Every in-network payment is recorded on Paystand’s Assurety blockchain, creating a notarized record trail that is protected, verified, and digitally auditable. Due to its digital format, the Paystand Bank Network allows for easier, faster, and more secure transactions than legacy options like debit or credit card payments.
Transactions made through the Paystand Bank Network do not require blanket authorization between trusted parties. Instead, the network employs cryptography and digital signatures to ensure the validity of each transaction. Each payment is initiated by the customer, which shows clear authorization and intent to pay instantly, therefore dramatically reducing the refund and chargeback requests commonly associated with credit card payments.
On top of that, the network eliminates processing costs and markups, offers instant fund verification and real-time payment tracking, includes proprietary Least Cost Routing (LCR) technology and blockchain-assured payment history, and creates digitally auditable record trails.
What are the Additional Features of the Paystand Bank Network?
- Automated bank login. Connect instantly with 16,000 banks to authenticate identity, verify good funds, and track payment settlement. Customers can use their online bank login to connect and pay with verified funds in real time instantly.
- Autopay fund-on-file. Fund-on-file lets you authorize, charge, and re-use your customers’ payment methods without accessing their private information directly. And it’s easy to set up automated, recurring billing, too. You and your finance team can easily set up monthly, annual, or custom payment schedules.
- A robust payer portal. Give your customers one place to go for all payments. Our Payer Portal provides a comprehensive overview of all payments your customers have made through your branded or embedded Paystand checkout and billing portal.
- Verifiable receipts. Every payment transaction over the Paystand Bank Network is recorded on the blockchain and is accompanied by a verifiable receipt sent to the payer. Your payers can access and print a permanent payment record at any time.
- Highly customizable. You’ve worked hard to establish your brand, and your payment system shouldn’t interfere. Paystand offers several levels of custom branding, from embedding your logo on the checkout window and receipts to full white-label integration.
- Comprehensive security. From PCI compliance and AML laws to bank KYC underwriting requirements and fraud monitoring, we handle the complexity of payment processing so you can focus on what you do best.
How Secure is the Paystand Bank Network?
Assurety is the blockchain-based payment authentication process unique to the Paystand Bank Network. It creates an automatically notarized record trail that is secure, certified, and fully auditable. Records can’t be altered in any way, assuring transactions on the Paystand Bank Network are valid and free of tampering. This process also identifies fraudulent receipts in real-time, guarantees that payments are free from manipulation, and provides a verified and fully-auditable payment history.
If you’re ready to stop paying credit card fees for good and are looking for a next-gen B2B payment network, make sure to book a time to speak with one of our payment experts here so you can learn more about the Paystand Bank Network.