B2B or business-to-business payment methods refer to the transfer of value in currency from buyer to supplier in exchange for goods and services. This method is complex and requires more time for transaction approvals and settling. Furthermore, B2B payment methods typically take a long time, ranging from days to weeks. B2B payments are unlike business-to-consumer or B2C payments, which are typically settled on the spot.
There are several categories of B2B payment methods, including wire transfers, paper checks, ACH payments, cash, and credit cards. Each method has its merits and demerits, differing in many ways. For example, ACH or automated clearing house payments are commonplace electronic payment methods. ACH payments are common for B2B payments, having more than ninety percent of workers receiving wages or salaries through direct deposit.
Meanwhile, wire transfers aren’t a very popular B2B payment method, but they are used in most high-value transactions. To receive and send b2b payments, you must create a business bank account with a reputable, recognized bank in Europe.