Hundreds of institutions around the world-including banks, credit unions, retailers, and finance companies-offer credit card products. Today, credit card use is ubiquitous, and it would be hard to imagine life without them. American Express issued the first plastic credit card in 1958, and revolving balances and finance charges were introduced a year later. The credit card processing system we know today goes back decades. ![]() Kyle Waltz, VP of Engineering, Versapay By accepting and processing credit cards, you not only meet the demands and expectations of your customers, but also directly impact your profitability and ability to accelerate cash flow. With businesses continuously looking to drive efficiency and accelerate cash flow, accepting credit cards is critical to increasing speed of payment. Beyond that, with businesses striving to increase accounts receivable productivity and deliver major improvements in efficiency, accepting digital payments like credit cards becomes a necessity. When businesses transact with one another, they have the same needs of speed, ease of use, security, and convenience as consumers do. Research from Gartner points to the “consumerization of the B2B commerce experience,” where “businesses that support and encourage digital commerce and digital payment will see faster growth and increasing market share compared to those that do not.” Despite the presence of hurdles not typically faced by B2C merchants-such as managing cash around accounts receivable and collecting on late payments- the B2B buying experience isn’t much different than its consumer-focused counterpart, and accounting and finance teams are increasingly seeing this. As businesses scale, so does the complexity of their accounts receivable (AR) operations. ![]() This trend is not unique to just consumer goods either-in fact, the business-to-business (B2B) world presents many similarities, along with many opportunities for further transformation. When brick-and-mortar shops were closed and handling cash took a back seat to contactless payments, debit and credit processing became synonymous with making and receiving payment for goods and services. In the business-to-consumer (B2C) world, credit cards are the payment method of choice, and the COVID-19 pandemic has only accelerated their use. People pay with credit cards because it’s simple, reliable, and fast. The popularization of credit card processing
0 Comments
Leave a Reply. |