B2B Payment 101: Processing, Automation & Global Growth

Key takeaways

• The business-to-business (B2B) payment market across the globe is valued at $109 trillion, which is almost 5 times the size of the B2C sector.¹ 

• Businesses are replacing their legacy paper-based systems with real-time rails which eliminate manual errors and payment delays. 

• With multi-currency accounts, your business can manage funds in 20+ currencies and avoid traditional bank floats, the period in which funds are in transit between the sender and recipient’s accounts.

The B2B payment processing landscape has officially shifted from a back-office administrative function to a high-stakes competitive advantage. While the world has spent years talking about "going digital," this is the year the data shows it finally happened: paper checks now account for less than 15% of total payment value.² 

Businesses are pivoting to real-time rails and incorporating more automation to escape both three-day bank floats and cross-border trade friction. A more efficient B2B process not only moves money but strengthens vendor relationships, simplifies global treasury operations, and provides more inter-organization financial visibility, which improves corporate decision making.

What are B2B payments?

B2B payments (business-to-business payments) are financial transactions involving the exchange of funds for goods or services between two corporate entities. Unlike B2C (business-to-consumer) transactions, which are typically immediate and simple, B2B payments are characterized by higher transaction values, complex approval workflows, and longer payment terms (such as Net-30 or Net-60). In 2026, the global B2B payment volume continues to dwarf the B2C market, driven by the digital transformation of supply chains.

An efficient and reliable B2B payment process is important for businesses, as it ensures vendors and suppliers get paid on time. An efficient process facilitates good working business relationships and minimizes disruptions. It also simplifies cross-border payments and transactions, streamlining cash flow and improving payment visibility, which can result in more strategic financial decision-making.

B2B vs B2C payments

The main difference between B2B and B2C payments lies in the complexity and the lifecycle of the transaction. While B2C payments are driven by speed and consumer convenience, B2B payment processing is designed to handle high-value transfers, rigorous approval chains, and the necessity of data reconciliation.

The future of B2B payments and trends

The B2B landscape in 2026 is defined by several key innovations:

• Agentic Commerce: AI-powered "agents" now manage routine transactions, matching invoices to payments and handling dispute resolutions autonomously.

• Real-Time Payments (RTP): The shift toward instant settlement has minimized the "float" time, allowing businesses to access capital seconds after a transaction.

• Level 3 Data Adoption: Major networks like Visa and Mastercard now require "Product 3" (Level 3) data, detailed line-item descriptions, to qualify for the lowest interchange rates.

• Stablecoin Integration: For cross-border trade, stablecoins pegged to fiat currencies are increasingly used for near-instant international settlement.

How does B2B payment processing work?

The process involves several steps to ensure security and accuracy:

• Invoice Generation: The seller sends a digital invoice containing payment terms and line-item details.

• Authorization: The buyer’s finance team (or an AI agent) approves the payment based on a purchase order (PO).

• Initiation: The buyer selects a payment method (ACH, Wire, Card, etc.) through a B2B payment platform.

• Verification & Routing: The processor verifies funds and routes the transaction through the appropriate network (e.g., SWIFT for international wires or the ACH network).

• Settlement: Funds are deposited into the seller’s account, and the transaction is automatically reconciled in the ERP system.

Benefits of B2B payments

• Improved Cash Flow: Digital processing reduces Days Sales Outstanding (DSO).

• Automation: Reduces manual data entry errors and administrative overhead.

• Global Reach: Modern solutions allow businesses to accept payments in local currencies.

Drawbacks of B2B payments

• Transaction Fees: Credit card and international wire fees can erode margins.

• Security Risks: High-value transactions are prime targets for sophisticated phishing and business email compromise (BEC).

• Complexity: Managing multiple tax jurisdictions and currency conversions can be taxing without the right platform.

Understanding the B2B payment cycle

The B2B payment cycle involves multiple stages, stakeholders, and business systems. Here’s a basic workflow of the different stages of a typical B2B transaction, including some variations specific to B2B payments.

Step 1: Procurement (The Purchase Order)

The cycle begins when a business identifies a need and selects a vendor. A Purchase Order (PO) is issued, which acts as a legally binding contract. It specifies the quantities, agreed prices, and technical specifications. This document is the "source of truth" used to verify all subsequent steps.

Step 2: Fulfillment (Delivery and Receipt)

The supplier delivers the goods or performs the services. The buyer’s receiving department inspects the delivery for quality and quantity, generating a Goods Received Note (GRN) or a proof of delivery. This confirms that the supplier has upheld their end of the contract.

Step 3: Invoicing (The Payment Request)

Once fulfillment is confirmed, the supplier issues an invoice. In a modern 2026 workflow, this is typically an e-invoice sent via an automated platform. The invoice includes the payment terms (e.g., Net-30), banking details, and the reference PO number.

Step 4: Approval (The Three-Way Match)

This is the most critical security step. Finance teams perform a Three-Way Match, comparing the Purchase Order, the Goods Received Note, and the Invoice. If all three align, the invoice is routed through internal stakeholders for final digital sign-off.

Step 5: Payment (Execution)

Once approved, the funds are released. Depending on the agreement, this might happen via ACH, Wire Transfer, Virtual Card, or Real-Time Payment (RTP) rails. For cross-border transactions, this stage also involves currency conversion and international compliance checks (like AML and KYC).

Step 6: Reconciliation (Closing the Books)

After the payment is executed, both parties must update their records. The buyer marks the invoice as "paid" in their ERP system, while the supplier matches the incoming funds to the outstanding accounts receivable. Successful reconciliation ensures the general ledger is accurate for financial reporting.

Types of B2B Payment Processing

B2B payment processing has shifted from a back-office necessity to a strategic tool for managing liquidity and global scale. Because business transactions vary in urgency and volume, companies now utilize a mix of traditional bank rails and modern fintech solutions to move funds. Selecting the right processing method is a balance of minimizing transaction fees, ensuring ironclad security, and meeting the specific delivery speed required by the supply chain.

B2B payment processing comparison overviews

ACH (Automated Clearing House)

• Description: An electronic network for domestic batch-processing of transactions between bank accounts.

• Utilization & Company Example: Used by companies like Stripe or Gusto for payroll. For example, a marketing agency uses Gusto to pay its US-based employees and local office rent via ACH Direct Debit.

• Pros: Very low fees; highly reliable for long-term domestic contracts.

• Cons: Not instant (1–3 days); limited to domestic transfers.

Wire & Global Transfers

• Description: High-priority electronic fund transfers, often sent via SWIFT for international or Fedwire for domestic.

• Company Example: Used by global platforms like Airwallex to help businesses pay international suppliers. For instance, an e-commerce brand uses Airwallex business account to pay a manufacturer in China in CNY or USD using local rail networks, avoiding the high fees of traditional bank wires.

• Pros: Near-instant availability; the global standard for cross-border trade.

• Cons: High transaction fees in traditional banks; irrevocable once sent.

Virtual Cards

• Description: Digital-only 16-digit card numbers generated for specific transactions, vendors, or set budgets.

• Company Example: A tech startup uses Airwallex to issue unique virtual cards for their Google Ads and AWS subscriptions. This allows the finance team to set strict spend limits and instantly "freeze" a card if a subscription is no longer needed.

• Pros: High security; earns rebates/cashback; automates reconciliation with real-time tracking.

• Cons: Not all industrial suppliers accept cards; merchant fees apply to the receiver.

Real-Time Payments (RTP / FedNow)

• Description: The 2026 standard for instant, 24/7/365 bank-to-bank settlement.

• Company Example: Used by platforms like Uber or DoorDash to pay drivers instantly at the end of a shift, even on holidays.

• Pros: Zero lag; improves supplier liquidity; available when banks are closed.

• Cons: Cannot be recalled; requires both banks to be on the RTP network.

Paper Checks

• Description: A physical written order directing a bank to pay a specific sum.

• Company Example: Still common in the Construction industry. A general contractor might issue a paper check to a local debris-hauling service that does not have an online payment portal.

• Pros: No tech setup; provides "float" (extra days before funds leave the account).

• Cons: Extremely high fraud risk; slow and manual (costly in terms of labor and postage).

International and cross-border B2B payments 

International payments are significantly more complex than domestic ones because they must navigate different regulatory jurisdictions, tax laws, and currency fluctuations.

• FX and Multi-Currency Wallets: Instead of converting currency at the point of sale (which often incurs a 3-5% markup), businesses now use platforms like Airwallex or Stripe to hold "Local Currency Accounts." You can receive EUR from a French client and pay a German supplier in EUR without ever touching a conversion fee.

• The "Local Rail" Strategy: Instead of sending every payment via the expensive SWIFT network, modern providers use "local clearing." For example, a US company paying a UK vendor might have its payment routed through the UK's Faster Payments Service (FPS), making an international transfer feel like a domestic one.

• ISO 20022 Standard: As of 2026, global financial messaging has fully migrated to the ISO 20022 standard. This means payments now carry "rich data", including the full invoice details and purpose codes, which drastically reduces the 26% of international payments that previously failed due to missing information.

Electronic B2B payment processing

Moving away from paper checks isn't just a convenience. It’s a massive upgrade for cash flow and security. In a B2B environment, the "plumbing" behind a payment is a bit more complex than a standard retail swipe because it often involves higher stakes, specialized data, and integration with accounting software.

Here is the step-by-step breakdown of how electronic B2B payment processing actually moves money from Point A to Point B.

1. Invoice Generation & Delivery

The process begins when the seller (supplier) generates a digital invoice within their ERP (Enterprise Resource Planning) or accounting system.

• The "Click-to-Pay" Link: Instead of a static PDF, the invoice includes a dynamic link.

• Data Attachment: The system attaches metadata (invoice number, PO number, and discount terms like "2/10 Net 30") to the payment request.

How Airwallex helps: Airwallex streamlines this by providing multi-currency payment links that can be embedded directly into your invoices; these links automatically display local payment options to the buyer based on their geography, ensuring the "Click-to-Pay" experience is frictionless regardless of the country.

2. Payer Authentication & Method Selection

The buyer receives the invoice via email or a secure portal. They don't have to write a check; they simply click the payment link.

• Choice of Rail: The buyer chooses between ACH (eCheck), Credit/Virtual Card, or Digital Wallets.

• Verification: For ACH, the system may use tools like Plaid to instantly verify the buyer's bank account balance, preventing "Non-Sufficient Funds" (NSF) returns later.

How Airwallex helps: Airwallex streamlines this experience by offering a globalized checkout that supports localized payment methods and multi-currency settlement, ensuring your buyers can pay in their preferred currency while you avoid unnecessary conversion fees.

3. Transaction Authorization

Once the buyer hits "Submit," the payment gateway takes over. This is the digital equivalent of a point-of-sale terminal.

• Gateway Encryption: The gateway encrypts the sensitive data (bank account or card numbers) to ensure it isn't intercepted.

• The Request: It sends a request to the Acquiring Bank (the seller’s bank) to ask the Issuing Bank (the buyer’s bank) if the funds are available and the transaction is valid.

How Airwallex helps: Airwallex acts as both the gateway and the acquirer, leveraging its direct integrations with global card schemes to improve authorization rates and reduce the "middleman" fees typically charged by third-party processors.

4. The Clearing House & Processing

This is where the actual "movement" happens, and it differs based on the method:

• ACH (eCheck): The request goes through the NACHA (National ACH Association) network. It usually takes 1–3 business days, though "Same Day ACH" is becoming a standard for B2B.

• Credit/Virtual Cards: These use the card networks (Visa/Mastercard). While they carry higher fees, they offer "Level 3 Processing Data," which provides the seller with lower rates by passing along detailed line-item info.

• Digital Wallets: These use tokenization to process the payment without ever sharing the actual card or bank details with the seller.

How Airwallex helps: Airwallex accelerates this phase by utilizing its own proprietary global banking network, allowing you to bypass the slow, expensive correspondent banking system. This means you can settle funds faster and hold them in multi-currency wallets to avoid forced FX conversions.

5. Settlement & Funding

After the banks communicate and the transaction is approved:

• Funding: The money is "settled" and deposited into the seller’s merchant bank account.

• Batching: Most processors batch all of a day's transactions together and deposit them as a single lump sum the following morning.

How Airwallex helps: Airwallex streamlines this process by providing like-for-like settlement, allowing you to collect, hold, and spend funds in multiple currencies without forced conversions, all while accelerating access to your money through their local banking networks.

6. Automated Reconciliation

The final (and most important for B2B) step is closing the loop in the books.

• The Sync: The payment processor sends a signal back to the seller’s accounting software (like QuickBooks, Xero, or NetSuite).

• Auto-Matching: The software sees the payment, matches it to the specific invoice number, and automatically marks that invoice as "Paid." This eliminates the need for manual data entry.

How Airwallex helps: Airwallex automates the B2B loop by offering native, real-time integrations with platforms like Xero, QuickBooks, and NetSuite that automatically sync multi-currency transactions and bank feeds, ensuring every payment is instantly matched to its corresponding invoice without manual intervention.

Automate your B2B payment process

Automating B2B payments is no longer a luxury for "big" companies; it's a strategic move to eliminate the "reconciliation headache" where your bank says one thing, and your ledger says another.

By connecting a payment gateway like Airwallex to accounting software like NetSuite, you create a closed-loop system where data flows in real-time.

The goal is Straight-Through Processing (STP). Here is the step-by-step lifecycle of an automated payment:

• Step 1: Invoice Generation: You create an invoice in your ERP/Accounting software. The system automatically attaches a "Pay Now" link.

• Step 2: Customer Action: The customer clicks the link and pays via ACH, Credit Card, or Wire through the integrated gateway.

• Step 3: Real-Time Sync: The gateway sends a webhook (a digital signal) to your accounting software the moment the transaction is authorized.

• Step 4: Automatic Reconciliation: Your accounting software sees the signal, finds the matching invoice ID, marks it as "Paid," and creates the corresponding journal entry in your General Ledger.

Key Benefits of automate B2B payment process

• Elimination of "Double Entry": You never have to manually type "Paid" in your accounting software after checking your bank statement.

• Faster Cash Flow: Automated reminders (dunning) can be triggered if an invoice isn't paid by the due date, nudging clients without you lifting a finger.

• Reduced Human Error: Manual reconciliation often leads to misapplied payments (e.g., applying Customer A's payment to Customer B's invoice). Automation uses unique IDs to ensure 100% accuracy.

• Lower Fees: Many modern B2B gateways (like Paystand) offer "least-cost routing," automatically pushing customers toward lower-fee options like ACH instead of high-fee credit cards.

How to set up recurring online payment process

1. Tokenize account details

When a client first signs up, they enter their details. But your system doesn't actually hold onto their credit card number or bank login. That’s too dangerous.

Instead, the payment processor (the middleman) takes that info and gives you a Token.

• This is a unique code that represents their account.

• You can use this code to charge them over and over, but it’s worthless to a hacker because it only works between you and that specific client.

2. Automate the payment request

Once the schedule is set (let’s say the 1st of every month), your billing software acts like an alarm clock.

• The Check: On the scheduled day, your software looks at the client’s profile.

• The Request: It sends a message to the bank saying, "We have Token #12345. Please send the $200 for this month's service."

• The Transfer: The bank confirms the "stand-in" code is valid and moves the money. This happens in the background while you’re sleeping.

3. Keep payment data current

In business-to-business sales, cards get replaced or hit their limits constantly. You don't want to call a client every time a card expires.

• Auto-Refreshing: Most modern systems have a "handshake" with banks. If a client gets a new card with a new expiration date, the bank tells the system, and your Token updates itself automatically. No one has to lift a finger.

• The Retry Logic: If a payment fails on a Monday because of a temporary bank glitch, the system just tries again on Thursday. Most of the time, the payment goes through on the second try without the client ever knowing there was an issue.

Is the B2B payment platform safe and secure?

Safety is the top priority for B2B transactions. Modern platforms employ:

• PCI-DSS Level 1 Compliance: The highest standard for card data security.

• 3D Secure (3DS): An additional verification layer for online card payments.

• AI Fraud Detection: Real-time monitoring of transaction patterns to flag anomalies

How to choose B2B payment processing providers

When selecting a provider, look for:

• Integration: Does it work with your existing ERP/Accounting software?

• Global Capabilities: Can you hold and settle in multiple currencies?

• Pricing Model: Does it offer Interchange Plus pricing or flat rates?

• Support: Do they offer 24/7 technical assistance for high-value transfers?

Using Airwallex for B2B payments 

Airwallex serves as an all-in-one "financial operating system" designed specifically to strip away the high costs and friction associated with traditional international banking. Leveraging a proprietary global payment network, it allows businesses to operate in over 60 countries as if they had a physical local presence.

Here is a detailed breakdown of how Airwallex supports B2B operations:

Global Collections & "Like-for-Like" Settlement

One of the most powerful features for B2B companies is the ability to bypass the "double conversion" trap.

• Virtual Local Accounts: You can instantly generate local bank details (Account Number, SWIFT/BIC, IBAN) for regions including the US, UK, EU, HK, and Australia.

• Avoid Forced Conversions: If you bill a client in USD, you can receive and hold that USD in your Airwallex wallet. Traditional banks often force a conversion to your home currency upon receipt (taking 3%+) and another conversion when you pay a supplier (taking another 3%+).

• Marketplace Integration: Connect directly to platforms like Amazon, Shopify, and eBay to collect earnings in local currencies without the high fees typically charged by those platforms.

Global Payouts via Local Rails

Airwallex avoids the expensive and slow SWIFT network whenever possible.

• Local Payment Rails: It accesses domestic clearing systems (like ACH in the US, SEPA in Europe, and Faster Payments in the UK). This ensures that 93% of transfers arrive within the same day, often instantly.

• Batch Payments: For businesses with global teams or many suppliers, you can pay up to 1,000 recipients in multiple currencies with a single file upload, significantly reducing administrative overhead.

• Transparent FX: While banks hide fees in the "spread," Airwallex offers interbank rates with a transparent markup, typically 0.5% – 1%.

Spend Management & Corporate Cards

Airwallex extends its infrastructure into your team’s daily spending.

• Multi-Currency Cards: Issue virtual or physical corporate cards to your team. These cards pull directly from your multi-currency balances. If you have EUR in your wallet and pay a vendor in Paris, there is 0% FX fee.

• Granular Controls: Spend management by setting individual spending limits, tracking expenses in real-time, and requiring digital receipt uploads via the mobile app.

• Accounting Automation: Sync all transactions directly with Xero, QuickBooks, or NetSuite to manage your expenses all in one platform. This eliminates manual reconciliation and ensures your books are always up to date.

Payment Gateway & Checkout

For B2B companies with e-commerce or SaaS components, Airwallex acts as a high-performance gateway.

• 160+ Local Payment Methods: Accept not just credit cards, but also local favorites like AliPay, WeChat Pay, iDEAL, and Klarna.

• Higher Authorization Rates: Using AI-driven routing, the system optimizes "Merchant Category Codes" (MCC) and retries to ensure legitimate payments aren't declined by the customer's bank.

• Embedded Finance: For platforms, Airwallex’s API allows you to embed these financial features into your own product, allowing your users to manage their own funds.

• Payment Links (No-Code): Instantly generate secure, branded Payment Links or QR codes from the Airwallex dashboard to share via email, SMS, or WhatsApp, which is perfect for B2B deposits or social commerce without needing a website.

• Payment Plugins (Low-Code): One-click "plug-and-play" integrations for major eCommerce platforms like Shopify, WooCommerce, and Magento that instantly upgrade your existing store with global payment methods and local currency pricing.

• Checkout & Elements (Flexible): Embed a pre-built, high-conversion payment checkout form directly into your site or redirect to an Airwallex-hosted page; it uses AI-powered routing and smart retries to automatically boost authorization rates behind the scenes.

Top B2B payment processing providers

• Airwallex: Best for cross-border businesses with a multi-currency account in 20+ currencies with local rail payouts to 120+ countries.

• Stripe: Provides deep API customization for developer-heavy businesses.

• Adyen: Focused on large-scale enterprise omnichannel retail.

• PayPal/Braintree: Focused on smaller businesses that prioritize consumer brand recognition. 

Frequently asked questions about payment processing

What are B2B credit card processing fees?

While standard rates vary, utilizing Level 3 processing data via an advanced provider can significantly lower interchange costs by providing card networks with detailed transaction metadata.

What are the top 5 best payment gateways?

The top 5 best payments getaways include Airwallex, Stripe, Adyen, PayPal, and Square, with each addressing a range of operational needs and customer types. Airwallex allows customers to receive and hold funds in 20+ currencies via Global Accounts and avoid fees common with traditional bank rails. 

What is a B2B transaction?

A B2B transaction is a financial exchange of funds for goods and services between two businesses. These transactions are often higher value than B2C transactions and require more complex reconciliation. 

Sources: 

1.  https://www.fortunebusinessinsights.com/b2b-payments-market-108853 

2.  https://www.capgemini.com/insights/research-library/world-payments-report