A common example of a B2B relationship is between a manufacturer and a wholesaler. The manufacturer is responsible for producing goods and selling them on to a wholesaler. The wholesaler may then have another B2B relationship with a retailer, selling the goods on to the retailer at a higher price to make a profit. Finally, the retailer is a B2C business, selling the good on at an even higher price to consumers.
There are many different businesses that operate in the B2B world, conducting B2B transactions on a daily basis. B2B transactions are a huge part of the supply chain, for example, as materials and goods are sourced, made, and sold between businesses throughout the manufacturing process.
During the construction of a new car, for example, many different B2B transactions and stages may occur as the original materials are sourced and sold on, turned into car parts, sold on again, and so on.
B2B transactions also commonly occur in industries like property management, travel, transport, and marketing, with businesses of different sizes and scales helping one another with relevant goods and services. A lot of B2B payments are made electronically for speed and convenience, and having a B2B merchant account is vital for accepting and processing these payments.
So what exactly do we mean by the term “B2B merchant account”? What is a B2B merchant account and what can it offer to your business? Well, in order to understand this, it’s best to first have an understanding of merchant accounts in general and know what they can do for businesses across many different industries.
A merchant account is basically a type of business account that is designed to facilitate electronic card payments. In other words, these accounts make it possible for the customers or clients of a business to make a payment to that business using their credit or debit card electronically, without the two parties having to be in the same physical location as each other.
B2B merchant accounts are really important, because a lot of B2B business is done online. B2B businesses can have business partners in totally different cities, states, regions, or even countries. And it’s impossible to make payments between different businesses physically, so a lot of B2B transactions occur electronically in the form of direct card payments and transfers.
B2B merchant accounts allow for these kinds of business transactions to actually take place. With a B2B merchant account, you’ll be able to receive payments from other businesses for your goods or services as easily and conveniently as possible. The accounts help to secure the process, and it’s almost impossible to succeed in today’s B2B world without a B2B merchant account.
B2B merchant accounts can be so important for any kind of B2B business, especially those that receive a lot of electronic card payments and do a lot of their business online. However, these kinds of business accounts can be quite tricky to obtain. Indeed, in a lot of cases, banks and payment processors may not offer the precise B2B merchant accounts you’re looking for.
Why is this? Well, it’s because a lot of B2B businesses are involved in high risk industries. There are many industries that fall into the “high risk” category, including the travel industry, firearms, alcohol, vaping, smoking, gambling, debt and financial services, SEO services, marketing services, sports betting, and so on.
If you’re operating in a high risk industry, banks may not want to work with you, for various reasons. In some cases, they may not want to associate with businesses in certain industries due to concerns about how it might affect their image. But in other cases, they might have genuine financial worries about the risks of working with certain high risk organizations.
In the B2B world, a lot of transactions can be taking place between businesses all over the world. With such a high volume of transactions and many high-value transactions taking place, it’s easy for fraud to occur, mistakes to be made, or chargebacks to be initiated. And all of these things are bad news for banks. This is why many of them can say no if you apply for a B2B merchant account.
It’s clear to see that getting a B2B merchant account is really important, but what can you do if the banks around you are all frightened by B2B risks and refuse to offer the B2B merchant accounts and services you need? Well, even if many banks say no, there are still some out there that will say yes, and Shark Processing can help you find them.
Here at Shark Processing, we specialize in matching high risk businesses with high risk merchant accounts, working together with our own exclusive network of reputable banks and trusted payment processors from around the world. We can help you find the ideal B2B merchant account to meet your needs, with the best possible rates, fees, and support structure too.
Our expert team of high risk payment processing professionals understands the risks and challenges that you can face when running a B2B business, and we work hard to help companies like yours grow and develop in the right directions. Contact us today to find out more about how we can help you get the best B2B merchant accounts and services.