The best payment processor does more than move money—it integrates with your accounting systems, reduces administrative work, and helps you get paid faster. Here are five critical factors every SMB should evaluate before choosing a B2B payment processor.
1
Seamless integration with your existing accounting system
One of the biggest pain points for SMBs is the manual work required to reconcile payments with their accounting records. The best payment processor will integrate directly with popular accounting platforms like QuickBooks and NetSuite, automatically syncing transaction data and eliminating the need for double entry.
When payments are processed, transaction details should flow automatically into your accounting system, including customer information, invoice numbers, and payment amounts. This integration not only saves hours of manual work each month but also reduces errors and provides real-time visibility into your cash flow.
Look for processors that offer:
- ✓Native integrations with your current accounting software
- ✓Automatic Invoice and deposit reconciliation
- ✓Real-time synchronization of payment data
- ✓Detailed reporting that matches your accounting needs
- ✓Cost recovery options like credit card surcharging or cash discounting programs
2
Expertise in high-volume B2B transactions
Most payment processors are designed for small retail transactions, but B2B companies often deal with invoices of $20,000, $50,000, or even higher amounts. Processing these large transactions requires specialized expertise and different risk management approaches.
The best payment processor for high-volume B2B transactions will offer:
- ✓Higher per-transaction limits without special approvals
- ✓Understanding of B2B payment timing and cash flow patterns
- ✓Experience working with your specific industry’s payment challenges
- ✓Appropriate underwriting processes that don’t flag legitimate business transactions
Processors with B2B expertise understand that a $30,000 transaction from an established customer carries different risks than 300 separate $100 retail purchases. They’ll have streamlined processes for large transactions and won’t subject your funds to unnecessary holds or delays.
3
Level 3 processing capabilities
Credit card processing fees can quickly eat into profit margins, especially on large B2B transactions. Level 3 processing, also known as commercial card optimization, can significantly reduce these costs by providing additional transaction data that qualifies your payments for lower interchange rates.
Level 3 processing requires sending detailed line-item information such as product descriptions and quantities, tax amounts, and merchant tax ID. While this requires more work on the backend, the fee savings can be substantial. For large B2B transactions, Level 3 processing can reduce credit card fees by 0.5% to 1.5% per transaction, which adds up quickly on high-volume payments.
4
Tools to improve DSO and cash flow
Days Sales Outstanding (DSO) is a critical metric for B2B companies, measuring how quickly customers pay their invoices. The best payment processor won’t just process payments when they arrive—they’ll help you get paid faster and more predictably.
Look for processors that offer:
- ✓Multiple payment options to make it easier for customers to pay
- ✓Automated payment reminders and follow-up sequences
- ✓Partial payment capabilities for large invoices
- ✓Recurring payment setup for subscription or contract-based services
- ✓Real-time payment tracking and customer communication
The right processor will also provide detailed reporting on payment patterns, helping you identify which customers consistently pay late and which payment methods result in faster collection. This data enables you to make informed decisions about credit terms and collection strategies.
5
Exceptional Customer Service and Support
Payment processing issues can directly impact your cash flow and customer relationships, making reliable support absolutely critical. The best payment processor will provide knowledgeable support when you need it most.
Look for processors that offer:
- ✓A support team that actually picks up the phone
- ✓Dedicated account managers who understand your business
- ✓Technical support for urgent payment issues
- ✓Transparent fee structures without hidden costs
A payment processor that views your success as their success will go beyond basic transaction processing to help you optimize your payment workflows and improve collection rates. They should be willing to work with you to customize solutions that fit your specific industry and business model.
Making the Right Choice for Your Business
Choosing the best payment processor for your SMB requires looking beyond just processing rates and transaction fees. The right solution will integrate with your existing workflows, provide exceptional support, handle your transaction volumes professionally, optimize your processing costs, and actively help improve your cash flow.
Key Evaluation Steps:
- →Request demonstrations that show real integration capabilities
- →Ask about their experience with businesses similar to yours
- →Understand exactly what support you’ll receive as a customer
- →Evaluate how each processor addresses the five key areas outlined above
The best payment processor becomes a strategic partner in your business growth, not just a vendor that moves money around. Choose wisely, and your payment processing solution will support your business success for years to come.
Ready to take control of your payment processing costs?
