# What Are B2B Payments?

Source: https://payneteasy.com/glossary/what-are-b2b-payments

_Learn what B2B payments are, key methods, digital solutions, and platforms that streamline transactions, improve security, and reduce fees._

B2B (business-to-business) payments are payments made by one business to another for goods or services. Examples include a retailer paying a supplier’s invoice or a company paying a software provider for a subscription. The term describes who is paying whom; it does not specify a particular payment method.

## How Do B2B Payments Work?

A B2B payment usually follows an agreed purchase, contract or invoice. The buyer pays through a bank transfer, card or another method accepted by the seller. Both businesses then need to match the payment to the correct invoice or order in their records.

Payment terms can affect when the money is due. For example, a supplier may require payment at checkout or give the buyer a set number of days to pay an invoice.

## Common B2B Payment Methods

UK businesses commonly use these B2B payment methods:

| Method | Speed | Typical use |
| --- | --- | --- |
| [Faster Payments](https://payneteasy.com/glossary/what-is-faster-payments) | Near real-time, 24/7 | Invoices and supplier payments |
| Bacs Direct Credit | Three working days | Scheduled payment runs, such as payroll and supplier batches |
| CHAPS | Same working day | High-value or time-critical payments |
| Business cards | Instant authorisation; settlement by the acquirer’s schedule | Online purchases, subscriptions and smaller invoices |
| Cheques | Usually by the next working day | Suppliers that still accept them; requires manual handling |

A business may use several methods because paying a supplier’s invoice and accepting an [online card payment](https://payneteasy.com/solutions/smart-checkout) involve different processes.

## When Is a Payment Gateway Used for B2B Payments?

A business can pay a supplier’s invoice by bank transfer or pay for software with a business card at an online checkout. Both are B2B payments. A [payment gateway](https://payneteasy.com/glossary/what-is-a-payment-gateway) may be involved in the online checkout, while a direct bank transfer generally follows a separate process.

A B2B payment gateway helps the seller accept online payments and connects the checkout to [payment processing services](https://payneteasy.com/solutions/payment-integration). It does not replace invoicing, internal purchase approvals or the systems a buyer uses to pay suppliers. That distinction helps businesses choose tools for the payment flow they actually need.

Payneteasy provides [payment gateway](https://payneteasy.com/solutions/gateway) technology with 1,000+ payment integrations, [smart routing](https://payneteasy.com/payment_technologies/routing_and_balancing_system) and reporting tools. For a broader comparison of methods and platforms, see [B2B payment solutions](https://payneteasy.com/glossary/b2b-payment-solutions).

## Frequently Asked Questions

### What is an example of a B2B payment?

A retailer paying a wholesaler for stock is a B2B payment. So is a company paying another business for software or professional services.

### Which payment methods can UK businesses use for B2B payments?

UK businesses can pay each other by bank transfer, including through Faster Payments, Bacs Direct Credit or CHAPS. They may also use business cards when the supplier accepts card payments. The method depends on the payment terms and the options available to both businesses.

### Do B2B payments require a payment gateway?

No. A business can pay a supplier directly by bank transfer. A payment gateway may be used when the supplier accepts payments through an online checkout, such as business card payments.

### How can businesses make digital B2B payments more secure?

Security depends on the payment method, provider and the business’s own controls. Businesses can restrict payment access, review approvals and independently verify changes to a supplier’s bank details before sending money.

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