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Frankly, if the ACH hasn't yet displaced extremely important part of the sales pitch, as card-
checks as a preferred B2B payment accepting sellers can expect to collect payments faster,
he noted. Operational efficiencies should also be part of
method, I'm not convinced it ever will. the pitch, and receivables staff dedicated to routines like
opening mail and depositing checks can be reassigned to
other important money-making tasks, he added.
McNamara believes few greenfield opportunities remain
for selling card acceptance to consumer-facing merchants. McNamara also pointed out that card payments can be a
"[I]f the pie is not getting any bigger in B2C, why is there so more equitable method of payment, because with checks,
much focus on it?" he asked in a blog post on his website, wire transfers and ACH credit payments, the paying
Guide2Interchange.com. Answer: because it's easier to firm typically is the party in control. They can throttle
sell retail merchants. Consumers expect to be able to pay payments to meet their cash-flow needs, but businesses
merchants using their credit and debit cards, and plenty of that offer trading partners the option to pay by card can
agents are eager to sell credit cards to businesses that sell negotiate terms that are equally beneficial to both parties.
to consumers.
To these benefits I would add the reduced potential for
It's not about price fraud. The card networks and financial technology firms
are continuously improving fraud controls. And by
The problem, of course, is that the "race to zero" continues collecting Level 2 and Level 3 data on B2B card payments
to slash margins on these accounts. Cash discounting the potential for fraud losses is practically eliminated. The
has offered a reprieve, but shifting the cost of acceptance payoff for ISOs and agents, meanwhile, is that residuals on
to consumers could backfire. Merchants have long B2B payments are going to be much bigger than residuals
complained about the cost of card acceptance, with from a typical retail account.
consumers now shouldering more of that cost, it is no
longer just a merchant issue.
Patti Murphy is senior editor at The Green Sheet and self-described
The key to selling B2B card acceptance is not to sell on payments maven of the fourth estate. Follow her on Twitter @GS_
price, McNamara said. The time value of money is an PayMaven.