Greater Levels of Security
B2B payments solutions have lots of layers of security, beyond what is often found in consumer-to-business payments.
First, they permit users to designate a select group of people who can approve payment transactions.
Second, a B2B payment platform often offers more secure payment methods, like virtual cards, which are issued by the payments company but usually backed by Visa or MasterCard. This card is emailed to the supplier for a specific amount – based on one or multiple invoices.
The supplier must then key in the exact amount into their Point-of-Sale system, or the transaction fails. When cleared, the money is then transferred to the supplier’s back account. Per the 2021 AFP Payments Fraud and Control Survey, virtual cards were subject to far less fraud attempts than ACH, wire transfers, and paper checks.
Lots of Banks to Fund Payments
Instead of one or two banking relationships, which is common for a consumer, many multifamily and CRE companies rely on 20 or more banks to pay their vendors.
Often, the banking relationships change and grow as the company acquires more properties.
Thus, the B2B payments company needs to be able to work with a broad range of banks to orchestrate payments – and handle changes seamlessly.
Some B2B payments companies, like Nexus, make it simple for users to add and/or change their funding banks online. Just like consumers, AP teams don’t want to tie up their time contacting a Call Center to take care of administrative payment tasks.
Leading B2B payment providers use measures like microdeposits to ensure that these bank accounts are set up correctly. With this process, the payments company will issue a debit and credit of less than $1, and a designated company official must confirm the microdeposit amounts before the account can be used to issue outgoing payments.
Managing Exceptions Online
C2B payments make it frictionless to manage common one-offs or exceptions to the rule. For example, most consumers can skip a recurring payment with a few clicks and then easily resume it the following month.
B2B payments companies need to meet this challenge – and enable similar changes.
For example, what happens when the AP Team issues a virtual card payment for an invoice, but the supplier has a credit on file. How does the money get refunded?
In the case of Nexus, that refund process is fully automated and simple to manage. The supplier can easily refund the money and the buyer can see the refund online – and reuse the funds for another payment.
Making it Easy for Suppliers to View Their Payments