2 Credit Card Processing Methods Through Which Payment Processing Software Can Save You Money!
As a B2B business, your company can make use of two different methods to reduce the costs paid for every transaction made through banks. But to be able to make use of these opportunities, you need to do thorough research and find the best payment processing companies that offer a personalized merchant account for B2B companies. These credit card processing businesses provide software that can increase the efficiency of many processes of your company and even automate a large chunk of them. They can also increase the number of methods through which your company can accept payments.
Due to the features offered by this type of software, you will be able to reduce the transaction costs of your company. Saving money without sacrificing the quality of the products or services that your clients get is one of the goals that any business should strive for. So, what exactly are these cost-reducing methods?
- Level 2 and 3 transactions. As a B2B business, you can process the transactions made by your clients through different means than other companies. These different methods offer the advantage of having much lesser transaction costs. Although the money saved may not seem a lot for smaller businesses, being only 1%. But for big companies, this amount can reach an astronomical amount that can allow the company to hire even 10 more people for the same amount of money saved. It is also possible to use this type of transaction processing manually as well, but the effort and time required each time is too high to be worth it. But software can be extremely fast, and it does not have any deficiencies.
- Recurring payment methods. If possible, you should try to sell your products or services with a recurring method. As a B2B, most of your clients will be more than glad to set up a recurring payment if your services have a high enough quality. They will not need to lose time every time transferring the money to your company. You will also get several benefits, the most important one for you is the ability to save more money by reducing the transaction costs even more. After you set a recurring billing model, you will not need to pay all the fees for manual transactions that you had to pay before.
Why Should a Credit Card Processing Gateway Allow Recurring Payment Methods?
Recurring payment methods are newer options for credit card processing, and their popularity is in continuous growth. These methods offer several benefits for most companies that can use them. Be aware that not everyone can make use of this type of payment method. There are several factors that you need to take into consideration. For example, if the prices of your products or services are constant and if your clients will need them monthly. But if your company can implement these methods, then you should look for a payment processing company and get a merchant account. You can use its software to upgrade your processing methods and grow your business at an accelerated pace.
Besides the saved money mentioned above, there are three more benefits that your company can get from implementing recurring payment methods.
- Improve billing efficiency. You will have to invest a little more labor into setting up a recurring billing method. But after you are done, there will no longer be any need for additional effort. And this applies to the rest of the cooperation period between your company and your clients. So, the effort required becomes zero, and the efficiency of the process reaches a maxed level, being almost automated from start to finish. You can invest that effort in other parts of your company that will contribute to the growth of your company even faster.
- Improve security. A majority of the companies that accept payments made with a credit card, but does not offer recurring billing, save the data of their clients to make future transactions easier and faster. But this also increases the risk of getting hacked and getting all yours and your clients’ payment data stollen. But if you use recurring methods, you will no longer need to save the data in your systems. It will be directly saved online instead, where it will be harder to access.
- Enhance loyalty. The best-known method to enhance the loyalty of your clients is through the quality of your products and services. But there are also other methods that you can use to increase it. And using recurring payment methods is one such method. The convenience offered by your company is increased, and it will be much harder for your clients to break up the collaboration.
What Other Advantages Can You Get from a Reliable Merchant Account?
Doing thorough research will give you the possibility of finding a reliable credit card processing company that offers a merchant account with more features and benefits than those mentioned above. These features and benefits can differ from company to company. But there is one mandatory feature, and every company should offer.
That feature is reporting and analytics. Many small businesses ignore this feature, and they do not see its importance. But a big company already knows how important the information and data obtained from this feature is. Many big companies suffered massive losses because of the lack of such a convenient method to acquire essential information about the company.
You will be able to predict the future trend of your company based on the data obtained from the analytics and reporting feature. But you can also use this information to make educated decisions for the future of your company. If both cases, the knowledge that you got will not only save the company from suffering losses in the future. But it will also help you increase the revenue and profits of the company more and more. The speed of your company’s growth will increase exponentially.