Payment acceptance in the B2B space gives businesses several options to choose from. Two of todays most popular payment methods are eChecks and credit cards. While credit cards have been the most commonly used as a go-to payment method for many years, eChecks have been gaining popularity in recent years – a result of the numerous benefits they can offer over credit card payments.
Following are some of the B2B benefits of eChecks over credit card payment acceptance:
Lower Processing Fees
One of the biggest advantages of e-check payments over credit card payments is lower processing fees. While credit card processing fees can range from 2-3%, eCheck processing fees are typically much lower, offering up to a 75% + savings. For businesses that process a large volume of payments, these savings can add up quickly, making a significant difference to the company’s bottom line.
Reduced Chargebacks
Chargebacks are a common issue for businesses that accept credit card payments. They occur when a customer disputes a charge and requests a refund from their credit card company. Chargebacks can be time-consuming and costly for businesses, as they often require significant resources to resolve, especially with previously posted reconciliation. With eCheck payments, chargebacks are much less common, as the process for disputing an e-check payment is more complicated and requires more effort from the customer.
Faster Payment Processing
eCheck payments are typically processed much faster than credit card payments. While credit card payments may take several days to clear, eCheck payments are usually processed within 24-48 hours. Simply put, if businesses receive their funds faster the improve to their cash flow can be huge..
More Control Over Payment Processing
Accepting credit card payments, are subject to the policies and procedures of the credit card companies businesses work with. This procedural experience can limit their control over the payment processing process; leaving them vulnerable to chargebacks and other issues. With eCheck payments, businesses have more control over the payment process as it’s a direct electronic funds transfer (EFT).
The Security Edge
eCheck payments are also more secure than credit card payments. While credit card payments can be subject to fraud and chargebacks, eCheck payments are less vulnerable to these issues. eChecks are processed through the same Automated Clearing House (ACH) network as paper checks, which is a secure and reliable system; designed to avert fraud and to ensure that payments are processed accurately.
The Case for Credit Cards
On the other hand, credit cards offer a number of advantages to businesses as well. They are widely accepted and can be used to make purchases online and even internationally. Credit cards also offer rewards programs, such as cash back or travel points, which can be attractive to consumers who want to earn benefits for their spending. Additionally, credit cards offer consumer protections, such as fraud protection and dispute resolution, that aren’t available with eChecks.
Ultimately, the choice between eChecks and credit cards will depend on your individual needs and preferences. If you value security and cost-effectiveness, eChecks may be the better option for you. On the other hand, if you want the convenience and rewards of a credit card, then that may be the better choice for you.
By working with an intelligent B2B platform like eTreem your organization can utilize both eCheck payments and credit cards and realize savings right to your bottom line. Contact us to find out how.
Accept Credit Card Payments Without Costly Transaction Fees
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