Wholesale and distribution payments are usually split between the invoice and the deposit. Each department might have a different idea of how to pay for the goods: some want terms, others want to pay by ACH, some use a commercial card, and others require approval for large invoice totals. Additionally, the finance team must reconcile the accounts with the ERP system.
B2B payment processing must do more than accept commercial cards. They should accommodate invoices, ACH payments, commercial cards, Level 2 and Level 3 data, payment links, customer portals, partial payments, invoice payment terms, and reporting to reconcile sales with the ERP system.
Why Wholesale and Distribution Companies Need B2B Payment Processing
Check payments between businesses are declining, but instead of replacing checks with a single payment method, businesses can offer several options to their suppliers and customers. According to Nacha, the number of B2B ACH transactions increased by almost 10% in 2025 alone, reaching nearly 8.1 billion B2B payments. These statistics show that business buyers and finance departments are leaning into electronic payments.
For wholesalers and distributors, the shift toward digital payments presents challenges. If buyers have trouble paying invoices, the AR cycle will stretch out. If the card data does not qualify properly for payments, there will be increased costs for paying for these transactions. If electronic payment records do not properly sync with an approved accounting or ERP system, the finance department will waste valuable time correcting them for incoming payables.
Who Needs B2B Payment Processing
This guide is most useful for companies with the following characteristics:
- Wholesale distributors
- Manufacturers
- Industrial suppliers
- Food and beverage distributors
- Medical and dental suppliers
- Building materials and trade suppliers
- B2B ecommerce website owners
- Companies that offer net terms
- Businesses that accept ACH payments
- Business owners who want to improve their accounts receivable and cash flow processes
The more your business features sales of products to other businesses through high-value invoices that can be paid with purchase orders or partial payments, the more important it is that you have a merchant account solution specifically designed for B2B companies. While ecommerce websites can accept credit and debit card payments, they may not include features to manage the full B2B invoicing and payment process.
B2B Payment Processing Methods Compared
Wholesale and distribution companies usually need a mix of payment methods. The right setup depends on customer preference, invoice size, margin sensitivity, AR workflow and how tightly payments need to connect to the ERP.
| Option | Best For | Main Strength | Main Tradeoff |
|---|---|---|---|
| ACH Payments | Large invoices, recurring buyers and lower-cost collections | Lower payment cost and strong fit for invoice payments | Requires authorization and return monitoring |
| Commercial Credit Cards | Buyers that want rewards, float, or procurement controls | Familiar and fast for customers | Can be expensive without Level 2 or Level 3 data |
| Virtual Cards | Enterprise buyers and AP-driven accounts | Easy for buyers already using AP automation | Can carry higher acceptance costs |
| Wire Transfers | Very large or urgent payments | Fast and final once processed | Higher cost and less efficient for routine AR |
| Customer Payment Portals | Repeat buyers and account-based ordering | Better self-service and invoice visibility | Needs ERP or accounting integration |
| Integrated B2B Merchant Account | Wholesalers and distributors with mixed payment needs | Better routing, reporting and reconciliation | More setup planning upfront |
For most B2B sellers, the best approach is not to force every customer to use a single payment method. It is to give customers practical options while guiding high-cost or high-risk payments into the right workflow.
Best B2B Payment Processing Providers (2026)
The best fit depends on whether your business needs flexible merchant account services, automation of accounts receivable (AR) processes, integration with your ERP software, optimization of Level 2 and Level 3 software features, or an invoice-to-cash platform.
- Payment Nerds is the best fit for wholesale and distribution companies looking for a flexible merchant account. Its features include ACH, card acceptance, invoice payments, commercial card optimization, and underwriting fit and reporting.
- Versapay is best for companies looking to automate their accounts receivable and manage digital invoicing and ERP integrations.
- Billtrust is best for companies with larger accounts receivable departments looking to automate the order-to-cash cycle with digital invoicing and cash application software.
- Stripe is best for online companies, B2B platforms, or software companies that need digital invoicing and payment links, ACH, card, and automation integrations for software developers.
- Stax is best for B2B companies that need merchant services, invoicing and recurring billing software, and Level 2 and Level 3 software integrations.
These recommendations are tailored to each company’s needs. A small business will have different software needs than a national company with already sophisticated accounts receivable and ERP systems.
How to Choose a B2B Merchant Account
Start by defining how customers purchase from you. A company with many repeat customers who accept their goods on net terms requires a different kind of merchant account than a B2B ecommerce company that receives payment online upfront. Consider the variables related to how customers purchase from you and how your finance department manages cash inflows from them.
Compare each potential merchant account provider on the issues that will cause the most trouble for you later in your relationship with them. Look at their options for ACH, commercial cards, Level 2 and 3 data, integration with your ERP software, payment portal options, access to your funding, chargeback and return policies, and their reporting and support for various payment types. The best payment solution for your B2B company will minimize your AR issues and avoid forcing your customers to use a payment method they are not interested in.
B2B Payment Processing Costs Explained
Because the mix of payments will vary, the costs of each type of B2B payment processing will differ. ACH payments may have lower processing costs. Payments made with cards will incur costs associated with the interchange and the payment processor. Payments made via wire will involve fees from the banks involved. Costs for platforms that automate A/R may include software costs and implementation within the business.
The costs will also include factors such as the volume of payments to be made, the ticket size, the risk of those payments, and the need to integrate the software with the company’s existing systems. Additionally, the company may require custom merchant account services.
Instead of asking what the cost will be for each type of B2B payment processing, ask whether the solution will create more value for the business overall. For example, reducing the number of manual steps involved in the billing and collections process may be more valuable to a B2B company than lower card payment costs.
Common B2B Payment Processing Mistakes to Avoid
One of the most common mistakes with B2B payments is to treat them like ecommerce payments. Companies that offer wholesale or distribution products typically require different payment information than ecommerce platforms require. While the website may allow customers to enter and submit their payment information, it may not accept the payment methods the business requires to collect money from its customers.
Another common mistake in B2B payments is accepting commercial cards without optimizing the data behind them. While accepting commercial cards from B2B companies can be helpful, it can also be expensive if the business does not have the setup to handle Level 2 and 3 data. Additionally, adding ACH, card, and portal payments without a plan to reconcile them can create issues for the company.
Key Features to Look for in B2B Payment Processing
Invoice-Based Payment Collection
Wholesale and distribution companies usually start with an invoice. The payment system must allow the customer to pay the company from the invoice, statement, portal or account page. The best invoice-based payment collection solutions will allow for open balances, partial payments, multiple invoices and payments made via payment links with detailed remittance information. This will speed up the payment process for the customer and allow the accounts receivable department to apply payments to the correct invoice.
ACH and Bank Payments Support
ACH payments are usually one of the best options for B2B companies. The B2B company can provide customers with an option to pay via bank payments to avoid the pressure created on the company by card fees. For business-to-business companies, ACH payments must have authorization and return controls as part of the setup. The business will need to be able to validate customer accounts and payments. Communication between the B2B company and the customer is also essential for ACH payments. Adding ACH payments to a company’s payment system must make it easier for the customer and the business to use and reconcile bank ACH payments.
Commercial Card and Level 2/Level 3 Data
Business-to-business companies usually want customers to pay for their purchases using commercial cards. However, adding commercial card payments to a payment system can get expensive if the company does not have the correct enhanced data filtering in place. Using Level 2 and Level 3 data, B2B companies can qualify for enhanced data for commercial cards. This enhanced data includes information on the purchase of the products from the B2B company such as the tax amount, total invoice value, line items and purchase details. This information will make it easier for commercial cards to qualify for B2B companies.
ERP and Accounting Software Integration
B2B payments must connect to the accounting and enterprise resource planning (ERP) software that the finance department uses. Most distributors will use an ERP and accounting software package and may also integrate with their order management and customer relationship management (CRM) software. If the payment system does not connect to these packages, the accounts receivable department will have to manually input each payment into the accounting software. B2B payment processing software should allow payments to automatically flow into the correct customer account and invoice in the accounting software. This integration will allow for automation of the accounts receivable department’s processes and further streamline the payment process.
Customer Portals and Terms
B2B customers may need access to a customer portal to view their account details and make payments. These portals can provide customers with the ability to view their open invoices, credits, purchase orders, payment history and account balances with various payment terms. B2B companies will have specific payment terms such as net 30 days, discounts for early payments, partial payments and deposits. These terms should be able to be programmed into the payment system for automated processing.
Reporting, Reconciliation and Cash Application
A good B2B merchant account service will make the finance department’s life easier. The B2B company will need to have reports that detail the products that were invoiced to customers, the payments that were received, the payment methods used, fees deducted from payments and which customer account should be updated. This is especially important for companies that take ACH payments, card payments, wire transfers, virtual cards and checks. Without good reporting and cash application software, a B2B company’s choice of payment methods will make the finance department’s life more difficult. The best B2B payment processors will speed up the collection of payments from customers while reducing the amount of work that the accounts receivable department must do at the end of each month.
FAQs About B2B Payment Processing
Q: What are B2B payment solutions?
A: B2B payment processing is a tool and workflow associated with a merchant account that facilitates business-to-business payments, such as issuing invoices and receiving payments via ACH payments, credit cards, wire transfers, payment portals, virtual cards, and integrating with an existing ERP system.
Q: What should B2B payment processors include?
A: B2B payment processors should offer ACH payments, credit card payments for businesses, invoice payments, customer payment portals, Level 2 and Level 3 data support, reporting and reconciliation software, and integrations with accounting and ERP systems.
Q: Why do wholesale and distribution companies need specialized payment processing?
A: Because of the way they typically invoice their customers and the way businesses in these industries manage their receivables, their payment processing needs are different. They have different payment terms, more use purchase orders, and often need to process partial payments.
Q: Are ACH payments good for B2B companies?
A: ACH payments are good for B2B companies for the same reasons that they are common among B2B relationships: the payments are typically larger, they occur at lower costs between banks, and they happen more frequently.
Q: What is Level 2 and Level 3 processing?
A: Level 2 and Level 3 data allows for B2B card payments to qualify for more favorable interchange fees for the companies making the purchases. This is most relevant for B2B commercial and corporate purchases.
Q: How should distributors compare B2B merchant account services?
A: Consider payment methods, integration with existing ERP software, invoice and payment portal software, ACH processing, commercial card support, and reporting software. The best merchant account solution will fit in with the existing account receivables process for the business.
Conclusion
B2B payment processing for wholesale and distribution companies should cater to how business buyers pay: via invoices, ACH, commercial cards, wire transfers, and terms- and account-based payment workflows. Top B2B merchant account providers offer businesses improved collections and visibility into their cash flow.
If you are comparing B2B payment processors or are in need of a merchant account that fits the payment workflows of your wholesale and distribution company, Payment Nerds may be able to help you compare the available options. The goal should not be accepting payments, but rather building an invoicing and collections process that aligns with how your business sells its products and services.
Sources
- Payment Nerds. “B2B Payment Solutions & Processing.” Accessed May 2026.
- Nacha. “Same Day ACH and Business-to-Business Payments Propel ACH Network Volume Growth in 2025.” Accessed May 2026.
- Nacha. “ACH Network Volume and Value Statistics.” Accessed May 2026.
- Stripe. “How to Accept B2B Payments: What Businesses Need to Know.” Accessed May 2026.
- Versapay. “B2B Payment Processing Solution.” Accessed May 2026.
- Billtrust. “AI-Powered Accounts Receivable Software.” Accessed May 2026.
- Stax. “What Is B2B Payments Processing?” Accessed May 2026.
- U.S. Chamber of Commerce. “How to Reduce Credit Card Processing Fees.” Accessed May 2026.
- PCI Security Standards Council. “Merchant Resources.” Accessed May 2026.
