The world of payment processing moves quickly, and best business practices continue to change. Like many other aspects of doing business, payment processing is in the middle of a systemic overhaul thanks to new technologies, shifting customer expectations, and a rewiring of how B2B payments work. As just a few examples: FedNow is shaping how money moves in the US, SEPA Instant Credit Transfers are making “cross-border” transactions within Europe feel domestic, and India’s Unified Payments Interface (UPI) is handling more than 500 million transactions daily. Finance teams might be rethinking what “processing” even means, as automation takes over the work of invoicing, approvals, and reconciliation.

Failing to address these changes can mean higher fees, higher error rates, and missed opportunities to really understand how cash flows through your business. But keeping your payment processing system on the forward edge of what payment processing looks like now can help you benefit from a tremendous upside—while also future-proofing your business.

Below, you’ll find a close examination of the current trends in B2B payments, the technologies reshaping them, and the practices that can help keep finance teams ahead of the curve.

What’s in this article?

• What are the most common B2B payment methods?
  
• How does payment processing work?
  
• How can automation make payments faster and reduce human error?
  
• Which digital payment trends should businesses be paying attention to right now?
  
• What’s the smartest way to cut down on fees and interchange costs?
  
• Why are real-time analytics and reporting so important for payment management?
  
• Are digital wallets or BNPL options worth adopting for B2B payments?
  
• How can you reduce payment fraud in B2B transactions?
  
• What’s the best way to handle international B2B payments?
  
• How can you optimize payment processing for different industries?
  
• What payment processing integrations does an ERP system require?
  
• How can you improve payment approval rates?
  
• What are the best practices for payment reconciliation?
  
• How should you handle partial payments and payment plans?
  
• What payment data should you track for B2B transactions?
  
• How to choose the right payment methods for your business
  
• How should you run an effective audit of your current payment stack?
  
• How Stripe Payments can help
  

What are the most common B2B payment methods?

When businesses pay each other, they rely on a handful of established payment methods, each of which has its own mechanics and best use cases. Here are the most common payment methods and where they’re useful.

Checks

A paper check is a written order instructing a bank to transfer a specific amount from one account to another. Checks are slow and manual, but they’re still in use. In 2024, $8.17 trillion USD in commercial check payments were processed in the US alone.

Direct debits

Direct debits—bank-to-bank transfers where the payee pulls funds on a set schedule—are common for recurring B2B payments such as subscriptions or utilities. They’re inexpensive and typically clear in two to three business days. In Europe, Single Euro Payments Area (SEPA) Direct Debits facilitate euro payments between European countries. In the US, Automated Clearing House (ACH) payments allow for bank-to-bank transfers in US dollars.

Wire transfers

A wire is a direct bank-to-bank transfer that moves money faster than a direct debit, typically within one business day for domestic transactions. Because they’re quick and final, wires are often standard for high-value or time-sensitive payments. Fees are higher, so businesses typically reserve them for situations where speed and certainty matter more than cost.

Credit cards

Business credit cards work just like consumer cards: the payer charges the expense, the card network routes the transaction, and the issuing bank later collects from the payer. Corporate and purchasing cards are widely used to pay for smaller invoices, subscriptions, and travel.

Digital wallets

Digital wallets (e.g., Apple Pay or Google Pay) allow businesses to authorize payments with just a few clicks. The payment details are tokenized for security. In B2B ecommerce and procurement platforms, digital wallets help shorten the checkout process and reduce manual data entry.

Real-time payments

Real-time payments immediately transfer funds between bank accounts. Many countries have their own real-time payments systems, including FedNow in the US, Unified Payments Interface (UPI) in India, Pix in Brazil, and Swish in Sweden. They run 24/7 and settle funds within seconds, which makes them useful for time-sensitive B2B transactions.

Offering a mix of these options gives you and your customers more flexibility. Payment providers such as Stripe can help make this simple by offering dozens of methods through a single application programming interface (API) integration.

How does payment processing work?

A B2B payment passes through a series of steps that make sure the correct amount lands in the right account with the appropriate record attached.

Here’s what that flow typically looks like:

• Agreement or purchase order: A contract or purchase order (PO) details what’s being bought, for how much, and when payment is due.

• Delivery: The seller provides the product or service. Delivery triggers the right to request payment.

• Invoicing: The seller issues an invoice. Invoices are now often issued electronically, pulled directly from an enterprise resource planning (ERP) or invoicing system.

• Approvals: On the buyer side, invoices typically route through multiple layers (e.g., department heads, procurement, accounts payable) before approval. Automated approval flows can keep invoices from pending in inboxes indefinitely.

• Payment: Once approved, the payment is sent by wire transfer, credit card, or whichever method was agreed upon.

• Security checks: Modern payment processing systems insert fraud controls at this step, including customer authentication, banking verification, and fraud detection algorithms to spot anomalies.

• Reconciliation: After funds arrive, both sides match the payment to the proper invoice. Automated reconciliation tools can match payments and invoices in real time by using references such as invoice numbers or exact totals.

• Compliance and record-keeping: The final layer ensures tax, Anti-Money Laundering (AML), and reporting requirements are met and maintains an auditable trail. Many platforms now log these automatically.

How can automation make payments faster and reduce human error?

Manual payment processes are slower because humans are involved in every step. Someone has to type in invoice details, email a manager for sign-off, double-check account numbers, and reconcile the books. Automation reshapes the entire cycle so speed and accuracy are the default. Here’s how it can help.

Invoicing

An automated system such as Stripe Invoicing can issue an invoice the moment goods ship or a service milestone is met. Instead of drafting documents by hand, invoicing software pulls data (e.g., item, price, customer, due date) directly from your ERP or ordering system. That consistency means fewer mistakes, and invoices leave your system minutes after delivery. You can also schedule automated reminders to arrive before and after the due date.

Approvals

Approval chains are often where invoices stall. With automation, routing rules decide who needs to see what (e.g., department heads for amounts under $10,000, CFO sign-off over that threshold). Approvers are notified instantly and can approve from their phone to keep the process moving.

Data entry

Payment errors usually happen when people reenter data. Automation can reduce mistakes by keeping one source of record. Systems pass the data through without retyping, so invoices, approvals, and payments all match. Automated reconciliation tools go further by matching incoming payments to open invoices in real time and flagging short pays, overpays, or duplicates immediately.

Payments

Automation creates consistency across the whole ledger. Payment reminders nudge customers before invoices go late, card account updaters (CAUs) refresh expired details automatically, and smart retry logic spaces out reattempts on failed charges instead of hammering the network. The result is a steadier rhythm of collections and fewer surprises at the end of the month.

Scalability

As volume increases, automated workflows can handle that growth without adding headcount. Recurring payments run on schedule, approvals follow rules, and only exceptions surface for human review.

The effect is cumulative, with faster invoicing, cleaner approvals, fewer errors, steadier cash flow, and processes that can grow without adding friction.

Which digital payment trends should businesses be paying attention to right now?

B2B payments are always changing as customer preferences and technology shifts. Here are the main trends that can yield strategic advantages right now.

Instant payment networks

Businesses are learning that waiting days for money is costly, and real-time systems are gaining ground across markets. The European Union adopted regulations in 2024 requiring SEPA Instant Credit Transfers to arrive within 10 seconds. US-based banks are increasingly adopting FedNow; as of Q2 2025, it had settled 2.13 million payments, worth more than $245 billion USD. Supporting these swift payment methods is becoming the expectation.

E-invoicing

Countries such as France, Italy, Germany, Mexico, and Brazil require e-invoices for certain transactions. E-invoicing speeds up billing, cuts down on mistakes, and improves transparency. This method also provides richer remittance data (i.e., who paid, for what, and when). It all adds up to more efficient accounts receivable (AR), clearer audit trails, and greater cash flow visibility.

AI and fraud detection

As speed and digitization rise, so does risk. This is where AI-driven fraud detection comes into play. Machine-learning algorithms identify atypical patterns, such as an invoice paid twice or a new vendor account mid-cycle, predict when payments might fail, and allow for smarter retries. When coupled with tokenization and account-updating features, your system can become that much more secure.

BNPL and flexible financing arrangements

Buy now, pay later (BNPL) is popular in consumer markets, and now, it’s creeping into B2B. Businesses that offer flexible payments (e.g., split payments, trade credit, deferred terms) can land larger or higher-risk deals without taking the full cash flow hit at once. BNPL isn’t yet mainstream in B2B, but it’s gaining traction.

Digital wallets and mobile-first

Digital wallets and mobile-enabled portals offer the speed and simplicity of paying with one click. If B2B buyers seek out mobile-first access, accepting instant wallet payments can make repeat purchases and small-ticket renewals easier.

Blockchain and tokenization

Blockchain, stablecoins, and tokenized assets aren’t mainstream yet, but they’re growing in popularity. The average supply of stablecoins in circulation has steadily grown year over year, with $5.67 trillion USD in adjusted transaction volume in 2024. These digital assets can help improve security, settlement speed, and transparency across borders.

What’s the smartest way to cut down on fees and interchange costs?

Fees chip away at your business’s margins every time a payment clears. To limit them, focus on steering transactions to more affordable methods, qualifying for lower card rates, and negotiating with providers.

Consider these strategies:

• Favor direct debits or real-time transfers for large invoices: Fees for these methods are generally lower than credit card processing fees.

• Optimize card data: Collecting a customer’s postal code and including it in the transaction data can qualify the transaction for a lower interchange rate.

• Negotiate pricing: At scale, interchange plus is often cheaper and more transparent than flat-rate pricing.

• Localize cross-border payments: You can save on cross-border fees by processing cards domestically in the customer’s home region using a local acquirer. This method can also help improve your approvals process.

Small adjustments, such as collecting postal codes and auditing monthly processor statements, can translate into thousands of dollars in recovered margin each year.

Why are real-time analytics and reporting so important for payment management?

Real-time reporting involves knowing which invoices have cleared, which have failed, and if customers are slipping past due—without needing to wait until the month ends.

Real-time analytics help with:

• Visibility: Live dashboards let finance teams track collections as they happen. You’ll know right away if a usually reliable payer is late.

• Detection of issues: Sudden drops in approval rates or spikes in chargebacks show up instantly. Teams can start investigating the same day.

• Customer transparency: Real-time data allows you to immediately let a client know if their payment succeeded or didn’t go through. This transparency can help create a better customer experience.

• Strategic insights: Over time, live data allows for further analysis. Days sales outstanding (DSO) trends, regional delays, and payment method performance are all valuable metrics to track.

Are digital wallets or BNPL options worth adopting for B2B payments?

Both digital wallets and BNPL might cross over from consumer to business use, but in different ways.

If digital wallets make their way into B2B procurement and ecommerce, they can allow buyers to authorize payments with stored credentials and speed up repeat or mobile-first purchases. They likely won’t replace direct debits or wires for large invoices, but they can be useful for small and mid-sized transactions where speed and convenience matter.

BNPL for business is essentially trade credit outsourced to a third party. Sellers are paid up front, and buyers get 30–90 days or structured installments. The global B2B BNPL market hit $14 billion in 2023 and is expected to keep growing as companies look for flexible credit options. It’s most useful in industries with large ticket sizes (e.g., manufacturing, wholesale, and software-as-a-service—or SaaS), where deferred terms close deals without adding credit risk to the seller’s books.

Together, these methods signal a shift toward flexibility and ease, similar to B2C transactions, for B2B payments.

How can you reduce payment fraud in B2B transactions?

Payment fraud is a universal challenge for B2B companies, and the stakes are high because transactions are larger and more complex.

Here are the top ways to tackle the risk of fraud:

• Technology: Tokenization protects stored card details, while account updater services reduce failed payments that can mask fraud. AI-driven fraud detection, such as Stripe Radar, can flag anomalies in real time. It scans for unusual payment patterns more effectively than static rules.

• Process controls: Dual approvals for large transfers and multifactor authentication (MFA) for vendor changes can stop common schemes, such as compromised business emails or fake vendor invoices.

• Staffing and vigilance: Fraudulent actors often exploit human error. Policies such as verifying bank detail changes via phone or routing large payments through multiple sign-offs are key.

The goal is a layered defense: advanced tools, strong internal controls, and educated staff working together to catch fraud attempts.

What’s the best way to handle international B2B payments?

Cross-border payments bring their own complexities. Currency conversion, compliance, and speed all matter.

As you consider your international strategy, be sure to prioritize:

• Local payment methods: In Europe, SEPA Credit Transfers typically settle within one business day, while SEPA Instant Credit Transfers clear in seconds. In the US, real-time payments are expanding, but cross-border payments still lean on wire transfers, which are reliable but slow and with a higher fee.

• Multicurrency strategy: Consider holding balances in key currencies to help avoid repeated conversions. Using platforms that support local acquiring can also reduce cross-border interchange while boosting approval rates. Stripe, for example, supports multicurrency management in more than 135 currencies.

• Regulatory guardrails: Global transfers must pass AML, sanctions, and tax reporting checks. Reduce the risk of funds being delayed or frozen by working with a provider that offers built-in compliance screening.

How can you optimize payment processing for different industries?

Industry standards shape how money moves between businesses. Optimizing your payments means matching methods and workflows to those realities.

For example:

• SaaS and subscriptions: These businesses rely on recurring billing. Automated card charges and direct debit pulls keep renewals fast and functional, while account updater services reduce involuntary churn. Invoicing with net terms is standard for enterprise SaaS, so integrating e-invoicing with AR automation is key.

• Ecommerce and retail: The ability to check out fast is significant in these industries. Digital wallets, one-click payments, and strong fraud screening are important. Including multiple payment methods for B2B marketplaces broadens your reach and can increase order completion rates.

• Professional services: Service-based businesses depend on clean invoicing and partial payments. Online portals that let clients pay via digital wallet or card directly from the invoice can shorten DSO and cut down on back-and-forth.

• Manufacturing and wholesale: In these trades, businesses often manage large sums and installment payments. Direct debits and wire transfers are dominant, but the use of BNPL and trade credit platforms might expand as sellers look to offer flexibility without taking on balance sheet risk.

• Healthcare and regulated sectors: These businesses have additional layers of compliance. Payment systems need to integrate with industry-specific ERPs and maintain auditable records to satisfy regulators.

Some best practices hold across industries: pick the payment methods your partners expect, automate as much as possible, and embed payments into the systems your teams already use. Using a provider such as Stripe that has proven it can process payments with 99.999% uptime can also help optimize any type of business’s payment process.

What payment processing integrations does an ERP system require?

An ERP is often the system of record for invoices, receivables, and payables. The right integrations ensure payments flow without manual entry or reconciliation delays.

Here’s what you should plan to integrate:

• Accounts receivable: Integrations should close the loop between invoices and incoming payments. When a client pays, payment data should flow straight into the ERP and clear the invoice automatically.

• Accounts payable: Outbound integrations let you schedule and execute vendor payments directly from the ERP software. Approvals, execution, and status updates then feed back into the ledger so bills are closed in sync with cash outflows.

• Bank reconciliation: Direct bank feeds into the ERP allow for daily matching of transactions with invoices and bills. This can significantly cut month-end close time.

• Cross-platform connections: If you also run ecommerce, subscription billing, or procurement portals, integrate those systems with both your payment gateway and ERP. This consolidation can help keep order-to-cash and procure-to-pay cycles fully transparent, with fewer exceptions to chase.

How can you improve payment approval rates?

Every decline is lost revenue. In B2B, the amounts are generally larger, so even a small dip in approval rates can have an outsized impact.

Improve your approval rates by:

• Keeping details current: Outdated cards drive declines. Account updater services automatically refresh credentials when cards are reissued or when they expire to reduce involuntary churn.

• Sending richer data: Including transaction data such as postal codes can lower interchange and increase approvals by signaling legitimacy to issuers.

• Using intelligent retries: Many declines are temporary. Adaptive retry logic (i.e., spacing out attempts based on issuer behavior) can help recover payments without frustrating customers or racking up extra fees.

• Routing locally: Processing cross-border transactions through local acquirers can improve authorization rates while also cutting fees.

• Balancing fraud rules: Strict filters can help protect against risk, but false positives can lead to incorrect rejections. Fine-tune your fraud settings so edge cases are reviewed, not declined outright.

What are the best practices for payment reconciliation?

Payment reconciliation is the financial process of matching the money in the bank to the records on the books. Here’s how to do it effectively:

• Automate where possible: Modern ERPs and accounts receivable and payable systems can auto-match payments to invoices using reference numbers, dates, or amounts. This reduces manual checking and can help catch exceptions quickly.

• Standardize references: Assign invoices unique IDs and require customers to include them in remittance advice.

• Reconcile frequently: Daily or weekly reconciliation limits mismatches and flags issues such as duplicates or short pays before they escalate.

• Handle partials and bundles cleanly: Record partial payments against open invoices and split lump sums across multiple bills for accurate aging reports.

• Track fees and chargebacks: Net deposits often hide processor fees or refunds. Maintain clearing accounts to separate gross revenue, fees, and adjustments so margins stay precise.

• Maintain audit trails: Document adjustments and keep reconciliation reports. Auditors and managers both rely on clear chains of evidence.

How should you handle partial payments and payment plans?

Offering partial payments and structured plans requires a well-designed system; how you record them directly affects reconciliation, reporting, and cash forecasting. Here’s how to handle them:

• Define the payment structure: Break up the obligation into scheduled installments or milestone-based invoices. Keep the full obligation visible and record payments against it to ensure accurate accounts receivable aging and cash projections.

• Allocate with rules: When buyers submit lump sums against multiple invoices, decide in advance how you’ll allocate (e.g., oldest first, proportional, or as instructed). If you’re not consistent, your books can drift and disputes can arise.

• Surface overpayments and underpayments: An extra $200 paid down shouldn’t be buried in a “miscellaneous” category. Post it as a credit memo or unapplied cash so it shows up in AR reports. The same applies to short pays—log the gap so finance knows if it’s a dispute, discount, or error.

• Automate recurring pulls when possible: For structured plans, automate direct debits or card charges on the schedule. Automated payments help keep both sides aligned.

What payment data should you track for B2B transactions?

Effective finance teams treat payment data like a live feed of how money moves through the business. Let’s explore the categories worth tracking.

Liquidity signals

Look at DSO and your accounts receivable aging buckets (e.g., current, 30, 60, 90, and up). If DSO starts climbing, it’s your first clue that cash is getting stuck.

Transaction health

Track payment approval rates. A one-point dip on large volumes can mean millions in missed revenue. Pair that with direct debit return codes and reasons for card declines: they can tell you whether you’re dealing with insufficient funds, bad data, or overly stringent fraud filters.

Cost leakage

Break out processing fees by method. If card volume is rising but your margin is thin, you’ll see it here. Chargebacks belong in this view, too. Log both the totals and the resolution times.

Manual intervention

Measure how many payments reconcile automatically versus how many require manual intervention. A high mismatch rate usually means your invoice references or customer instructions aren’t aligned with your systems.

How to choose the right payment methods for your business

The right mix of payment methods depends on transaction size, frequency, geography, and the systems you already use. Here’s how to choose the right mix for your business.

Start with your buyers’ workflows

If you bill enterprises, expect to accept direct debits and wire transfers, which are typically embedded in clients’ payables processes. If you sell through a digital storefront, cards and digital wallets can help make checkout simpler. If your buyers are global, allowing local payment methods such as SEPA or UPI can help you keep up with competitors.

Factor in transaction economics

On a $100,000 invoice, card fees can be a pain point, so direct debits or wire transfers make more sense. On a $99 subscription, the fees are negligible compared to the churn risk of not accepting cards. Break down the impact on your margin by the type of payment, rather than averages.

Consider failure modes

Return codes, card declines, and cross-border failures all behave differently. If your revenue depends on recurring charges, payment methods with automatic account updating features can reduce involuntary churn.

Build in flexibility

Offering every payment method can be expensive and unnecessary. Instead, offer the methods that solve for your biggest segments, and layer in others if the data shows high adoption rates. Working with a provider that supports multiple ready-to-use payment methods makes it simple.

How should you run an effective audit of your current payment stack?

An audit can stress-test whether your payments infrastructure is still supporting your business as it grows. The goal is to discover whether there are cost leaks, security gaps, or workflow problems you’ve stopped noticing. Here’s how to conduct one.

Inventory everything

Map the providers you actually use: gateways, processors, banks, invoicing software, ERP systems, and fraud services. Companies sometimes discover redundant tools or accounts that nobody actively manages.

Examine the economics

Pull recent processor statements and calculate true cost-to-collect, including interchange, cross-border premiums, gateway fees, and chargebacks. Monitor closely for “downgraded” transactions where missing data pushed you into higher interchange tiers.

Investigate security and compliance

Conduct security checks for access controls, MFA on high-risk actions, and the Payment Card Industry Data Security Standard (PCI DSS) and AML coverage. Many finance teams find that one weak vendor integration unnecessarily expands their compliance footprint.

Trace workflows end to end

Select a handful of transactions and follow them from order and invoice to payment, reconciliation, and reporting. Where are humans reentering data? Where do approvals bottleneck?

Benchmark against current methods

Are you using instant payment methods, such as UPI or SEPA Instant Credit Transfers, where they’d help? If not, why? Compare your stack to what’s now baseline in the regions you serve.

Document and prioritize fixes

Rank the issues you’ve discovered. Fee leaks, false declines, and compliance risks deserve immediate action, while user experience (UX) adjustments can wait.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods, and Link—a wallet built by Stripe.

• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.

• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.

• Improve payments performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.

• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% uptime and industry-leading reliability.

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.