Business to Business (B to B, or B2B)

Sales of products and services between Businesses is a huge industry, much greater than most people realize. Most of the payments between businesses are by Checks, eChecks or ACH. Why? Many B2B Companies are large wholesale distributors with distribution to many smaller businesses that sell to consumers.

As an example, the wholesale beverage industry, which includes soft drinks, alcohol, and some food (snacks), is an extremely competitive industry with small percentages for profit margin. It is the nature of the business. For decades, delivery drivers would collect payments on delivery by check, and consequently if the check would bounce the driver would, on the next delivery, pick up a new replacement check. Checks could be lost, or drivers could forget to get the replacement check and confusion could upset the wholesalers customers. Although payments are often still made by Check or in some cases eCheck or ACH, the industry is too competitive to pay 2 to 3% for card charges and then still must recover bounced card charges, which are usually greater in number and harder to collect.

NSF ClearingHouse plays a big role in B2B so that the Wholesale Companies are in full control of receiving payments and the recovery of bounced payments. NSF ClearingHouse recovers up to 90% of NSF items before the Wholesale Company gets involved with any payment issues. Contractors are another B2B industry where large purchases are made by the contractors who pay mostly by check. Cash flow issues sometimes cause checks to bounce. NSF ClearingHouse recovers many of these types of payments so that its customers can more effectively run their businesses.

Effective, no cost recovery for B2B Clients is exactly what NSF ClearingHouse was engineered to do over 20 years ago. It continues today to be a critical partner in this truly diverse industry.