What is B2B payment processing?

‍B2B electronic payment methods refer to the infrastructure and workflows that allow financial transactions between businesses. It's a high-volume, high-value system for business payments.

Unlike B2C transactions, where payments tend to be rapid and automated, business-to-business transactions are more complex.

They often involve layered approval hierarchies and strict compliance checks to prevent payment fraud compared to traditional methods, particularly when factors like international operations or tax jurisdictions come into play.

B2B payment processing is evolving from a basic transaction tool into a strategic driver of growth and resilience.

As global B2B transactions surge toward a projected $124 trillion by 2028, businesses face increasing pressure to streamline complex processes, ensure compliance, and avoid costly delays.

This article explores the key challenges and innovations of B2B payment processing and how platforms like Nuvei are turning back-office functions into competitive advantages.

So, how does it work regarding payment terms?

What is the best payment method for B2B?

Choosing the right payment method, including considerations for cross-border payments, is about optimising efficiency, managing costs, and building trust with partners.

The ideal method depends on several variables, which might include: transaction size and frequency, business location, relationship with the vendor, as well as whether payments are recurring or one-off.

Here’s a closer look at the main digital payment options available today:

ACH transfers: reliable & cost-effective (US Focused)

ACH (Automated Clearing House) transfers are a mainstay in US-based B2B transactions.

They’re affordable and perfect for recurring payments like monthly service fees or vendor invoices, especially when considering transaction fees.

Processing fees are typically low, making ACH payments ideal for businesses focused on cost control.

While they’re slower than other digital options (settlements can take 1-3 business days), ACH transfers are useful in structured billing environments where predictability outweighs urgency.

However, they’re largely limited to domestic transactions, which makes them less suitable for global supply chains or international vendor relationships.

Wire transfers: fast & global, but expensive

Wire transfers offer something ACH payments can’t: timely payments with international reach.

They’re often used for high-value transactions where same-day or next-day settlement is required, such as urgent inventory restocking or global supplier invoices. Unlike ACH online payment services, wire transfers can move funds across borders in hours.

That convenience comes at a cost. Wire fees can range from $15 to $50 or more per transaction, with both sender and recipient often incurring charges.

They also offer limited recourse if errors occur, especially when using paper checks, which means accuracy in payment details is critical.

For businesses that need to prioritise speed and reliability for large or international payments, wires are an effective (if costly) option. They’re best used strategically rather than as a default payment method.

Credit cards: convenient, but costly for high volume

Credit cards, along with mobile payment solutions, provide immediate payment confirmation, allow for easy tracking of expenses and can unlock valuable perks. This makes them appealing for SaaS subscriptions or short-term service agreements.

However, processing fees often range from 2-3% of the transaction amount.

For high-volume or high-value payments, those fees can eat significantly into margins. Additionally, some vendors may not accept credit cards or may pass along fees to the buyer.

As such, credit cards are best reserved for lower-volume purchases where the benefits outweigh the processing costs.

For businesses that value visibility and flexible financing, mobile payments can be a smart complementary method within a larger payment strategy.

Digital payment platforms: agile & transparent, with integration needs

The rise of platforms like Stripe B2B, PayPal B2B, and others has transformed how businesses think about payments. These solutions offer a digital-first approach, combining speed with visibility.

Features like automated invoicing, real-time transaction tracking, and multi-currency support make these digital payment methods appealing to modern, tech-forward businesses.

They’re particularly valuable for companies with online or subscription-based revenue models, or those operating across borders.

However, they often need to be integrated with internal systems like ERPs or accounting software for enhanced security, something that can involve upfront technical work and additional vendor coordination.

Security is generally strong on these platforms, but businesses handling sensitive or regulated data should vet providers for compliance with standards like PCI-DSS or SOC 2.

B2B payment examples

To understand how B2B payment processing works, let’s walk through a few examples.

Retailer to wholesaler: the standard inventory replenishment flow

Imagine a retailer preparing for seasonal demand by replenishing inventory from a trusted wholesaler.

After negotiating pricing and delivery terms, the wholesaler sends an invoice.

The retailer’s purchasing department initiates an internal approval process-typically involving budget checks and inventory forecasting.

Once approved, payment is issued via ACH transfer, a preferred method in domestic U.S. transactions due to its low cost and reliability.

The transaction is logged and reconciled within the retailer’s ERP system, ensuring real-time visibility and financial accuracy. The wholesaler, upon confirmation, dispatches the goods.

This straightforward example highlights how efficient B2B payment processing, when automated and well-integrated, can speed up operations and strengthen supplier relationships.

Manufacturer to global supplier: managing cross-border complexity

Now, picture a manufacturing company sourcing raw materials from suppliers in multiple countries. In this case, payments aren’t as straightforward.

International regulations and varying currencies add layers of complexity. The manufacturer may use SWIFT wire transfers to ensure secure delivery of funds across borders.

To manage currency volatility, the finance team might use hedging tools or lock in exchange rates ahead of time.

Each transaction, especially when large sums are involved and currency conversion fees may apply, passes through compliance checks, procurement review, and financial sign-off.

This showcases the strategic value of flexible B2B payment infrastructure in maintaining global supply chains.

Tech company to SaaS vendor: automated recurring billing

Payment models often revolve around subscription-based services like SaaS platforms or APIs. Here, payment processing is highly automated.

A tech company might sign an annual contract with monthly or quarterly billing, set up through digital wallets or virtual cards.

These payments are integrated directly into the SaaS provider’s platform, which enables automatic invoicing and real-time reconciliation.

Approvals are usually established during the onboarding process, with payments continuing unless cancelled or paused. This reduces manual intervention and improves accuracy, especially when dealing with a wide range of digital tools.

It’s a great example of how digital-first B2B payment processing solutions are designed for agility and scale.

Challenges businesses face with B2B payment processing

Many companies still struggle with outdated or fragmented payment processes.

Manual approvals and paper invoices remain surprisingly common. These inefficiencies often lead to delayed payments, frustrated vendors, and disorganised cash flow management. One of the biggest culprits is the lack of integration between invoicing and payment execution systems.

Security is another major concern for other businesses. Email-based invoicing and paper checks or manual bank transfers are vulnerable to fraud and phishing schemes. Not to mention the pressure of ensuring secure payments while meeting regulatory requirements such as PCI-DSS, GDPR, or local tax laws.

Reconciliation is also a recurring pain point. When payments, accounting records, and bank statements live in separate systems, matching transactions becomes time-consuming and error-prone. These delays can have ripple effects on reporting, budgeting, and decision-making.

By automating key workflows and connecting their ERP directly to a payment gateway, they cut processing time while also reducing late payment penalties and improving vendor relationships.

Invoice creation & approval

The process usually starts when an invoice is generated after the goods or services have been delivered - in many organisations, this still happens via email or on paper.

From there, electronic payments from bank accounts are routed through multiple layers of internal approval. Depending on the size and structure of the company, this can involve department heads and/or finance managers.

Without a centralized system, approvals can get lost in inboxes or delayed by absence or miscommunication. The result is an error-prone process that holds up payments and strains supplier relationships.

Payment execution

Once approved, payments are issued using a variety of methods, whether by bank transfer or digital payment tools.

In companies with fragmented systems, this often means manually re-keying data or referencing spreadsheets to ensure accuracy, highlighting the need to reduce manual processes. This manual handling increases the risk of fraud.

Email-based instructions are vulnerable to phishing scams, while inconsistent processes make it difficult to enforce internal controls compared to traditional payment methods.

Reconciliation & record-keeping

After the payment is sent, the next challenge is reconciling it across accounting software and departmental budgets.

When these systems aren’t connected, teams are forced to match transactions by hand.

Delays in reconciliation can distort financial reporting or hinder forecasting.

Compliance & oversight

On top of this, businesses must ensure their payment processes meet regulatory standards like data protection laws to achieve increased payment security.

Without an integrated approach, maintaining proper oversight means juggling documents across disconnected systems.

Nuvei’s advanced B2B payment processing services

Whether you’re managing recurring billing or settling large international transfers, Nuvei can provide the infrastructure to do it faster, safer, and with far less friction.

Businesses can connect their accounting or ERP systems directly to Nuvei's payment engine. This means invoices can be created, approved, paid and reconciled within a single interface.

Nuvei supports a wide range of digital payment services and methods, including ACH, wire transfers, credit cards and real-time digital payments. And it’s all in a security-first approach with built-in tokenisation and end-to-end encryption.

For businesses operating across borders, Nuvei offers multi-currency processing and cross-border settlement capabilities. That makes it easier to scale globally while staying compliant with local regulations and currency standards.

Modern B2B payment processing is no longer just operational - it’s strategic. Businesses that adopt integrated, scalable solutions benefit from faster cash flow, lower risk, and stronger partner relationships.

As payment complexity grows, the value of upgrading becomes clear. Nuvei offers flexible, compliant, and efficient tools built to support growth and streamline financial operations. Upgrade with Nuvei today.