What is B2B payment processing?
B2B payment processing handles credit and debit card transactions between businesses rather than business-to-consumer sales. Unlike retail processing, B2B transactions often involve larger ticket amounts, custom billing cycles, purchase orders, net payment terms, and detailed line-item data for tax and accounting purposes. Level 2 and Level 3 data capture additional transaction details—customer codes, tax amounts, freight charges, line-item descriptions, and commodity codes—that qualify commercial and purchasing card transactions for lower interchange rates set by Visa and Mastercard. Businesses that sell to other businesses, government agencies, or institutional buyers benefit from B2B processing when their payment systems capture and transmit this enhanced data correctly. MSC's B2B payment processing solutions are designed for companies with complex invoicing requirements, custom approval workflows, and the need to optimize interchange costs on large-ticket commercial card purchases.