Credit cards are being employed in more and morebusiness-to-business (B2B) transactions. From the seller's point ofview, that can mean a lot of money walking out the door incredit-card fees.

A recently released reportfrom REL Consulting shows the use of credit cards in B2B hasincreased dramatically. According to REL, the information itgathers on large companies shows credit card use almost doubledbetween 2012 and 2013, to represent 9% of all B2B payments. RELestimates B2B sellers in the U.S. now incur an average of $2.2million in credit card processing fees per $1 billion ofrevenue.

“It's almost a hidden cost that a lot of organizations haven'treally noticed,” said Veronica Wills, a director at REL and leaderof its customer-to-cash practice. “The reason it goes unnoticed[is] a lot of organizations look at the profit for a particularproduct or service as being the direct cost versus what they sellit for, and the direct cost isn't going to include the cost of thepayment.”

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Susan Kelly

Susan Kelly is a business journalist who has written for Treasury & Risk, FierceCFO, Global Finance, Financial Week, Bridge News and The Bond Buyer.