Business-to-business (B2B) payment refers to payment within businesses in exchange for goods and services. Whenever one business invoices another business is a b2b scenario. These payments can be sent and received through the following channels: cash, wire transfers, checks, electronic bank transfers, ACH payments, credit cards, and online payment platforms.

There are five main ways to send and receive B2B payments:

• Checks – This category includes traditional paper checks and electronic checks issued by a buyer to a seller. When the check is deposited, the seller’s bank will request payment from the buyer’s bank.
• Wire transfers – These are funds transfers between banks that are routed through a financial network like SWIFT. Wire transfers usually deliver money within hours.
• Electronic bank transfers – These are payments between banks that are routed through the Automated Clearing House (ACH). This is one of the safest and reliable payment systems, but bank transfers take a few days longer than wire transfers.
• Credit cards (including one-time use virtual credit cards) – Credit cards allow the seller to receive payment quickly, but the buyer can defer payment for one or more billing cycles.
• Payment gateway – A payment gateway is an online payment platform that allows the buyer to pay for goods or services online during the checkout process.

Each option differs in ease of use for the sender and recipient, cost, and security. That said, most businesses are shifting away from paper checks and moving toward electronic and digital payments. Below, we’ll introduce you to some B2B payment products that cover the range of different payment processing options.