Merchant Direct Processing

The Role of B2B Credit Cards

Although they have experienced a much slower adoption than consumer credit cards, B2B credit cards are beginning to come into their own. For context, in 2015, only 13.9 million small business credit cards were in circulation, less than 4% of the personal credit cards in circulation at the time. 

Some of the challenges facing the adoption of this payment option included the reluctance of certain vendors to accept credit cards, and the relative risk involved. Maintaining an active credit line in such an easily accessible form represents a risk for most businesses, especially in the face of rising credit card fraud. Another potential drawback for many companies was the relatively high fees, with most transactions charging between 3% and 5% for processing. 

However, the ease, convenience, and stronger security measures introduced for these solutions have set them up as a preferred method of payment for many businesses. This increasing preference is showing up in the adoption numbers of the solution, and in the volume of yearly transactions. 

In 2015, business credit cards accounted for $430 billion in spending, or about 1 in every 6 dollars spent on consumer cards. However, current research from Mercator Advisory Group indicates that business credit card purchase volume is on pace to reach $686 billion in 2022.

Because of their compatibility with online payment solutions, and physical transactions, more businesses are providing B2B credit cards as a payment option for their clients. Despite this, the likely challenges facing business clients who want to adopt this solution means that B2B vendors must find ways to provide a secure, flexible, and attractive option for their clients. 

Merchant Direct can help

At Merchant Direct, we offer a full suite of solutions to meet the growing needs of B2B businesses in today’s virtual world:

Get in touch with us today to learn more about how we help our clients achieve a competitive edge in their payments processes.