BIPs or buyer initiated payments are increasingly being seen as one of the best ways to boost B2B sales. Sometimes called “push payments,” BIPs are a form of commercial card transaction that is very different from standard card processing.
Standard card processing involves several complex steps:
Eventually, after all these steps, the seller will receive funding for the sale’s value. Simultaneously, the same amount appears on the buyer’s card.
Conversely, buyer initiated payments require virtually nothing from the seller. All that is necessary is the vendor must send an invoice to the buyer. This is something that is standard practice anyway.
An Overview Of BIPs
Buyer initiated payments require no software, hardware or POS terminals to receive payments. Suppliers simply receive their payments directly deposited into their bank accounts together with electronic notifications of the deposit receipt. BIPs also offer both the supplier and the purchaser the opportunity to receive enhanced data. It is then possible to upload this data automatically into their existing AP and AR systems. There are also several other revenue-generating, cost-saving, and security-boosting features of BIPs. None are available when using standard card payments.
Suppliers Can Reap The Benefits
With buyer initiated payments, sellers only have to send an invoice and then receive a payment. It eliminates all the other time-consuming chores. As a convenient online payment platform, a BIP can be easily integrated into an existing payment process. There is no need for any additional resources or new software. It even takes a company’s invoicing and billing cycles into account.
It’s clear to see the benefits for B2B sellers. Facilitating card transactions with a BIP becomes the job of the buyer. This reduces the B2B payments burden on the vendor.
Are There Any Benefits For Buyers?
Although it may sound like all the advantages are for the seller, in fact, buyers can benefit, too. They can take advantage of the many financial and administrative benefits that come with using commercial cards. These advantages include several forms of purchase and payment controls and rebates – valuable financial benefits for business customers.
When Should You Use BIPs?
Buyer initiated payments are useful in addressing two common reasons for B2B companies to reject card payments.
The fear of additional fees for accepting cards often deters B2B businesses from opting into card payments. The good news is BIP programs reduce the cost of accepting cards and eliminate this problem.
Also, several B2B businesses worry that they lack the necessary administrative organization to process card payments. Many B2B sellers have processes in place that are unable to accommodate the acceptance of a buyer’s card information. However, when the buyer must perform those functions instead of the seller, this is no longer a problem.
Implementing BIPs
Careful planning is necessary when deploying buyer initiated payment solutions into the B2B environment. Yet, the simplicity of use and the cost-effectiveness for all parties involved make it worthwhile. The accuracy that eliminates potential payment processing errors is another reason to consider using this solution. As a streamlined option to speed up and facilitate payments, BIPs can revolutionize the process for B2B suppliers and sellers.
Finding the most convenient ways to receive payments from customers is essential for B2B sellers. By making the process as swift and streamlined as possible, you can increase revenue exponentially. REPAY has designed its B2B payment solutions to improve the process of receiving payments for small businesses. The result is more success and better cash flow.