For a wholesaler, collections are where margin turns into cash. A delivery worth $20,000, $100,000 or $500,000 can sit unpaid for 30 or 60 days, while the business has already paid for the stock, the freight and the warehouse. The best payment method makes it easy for good customers to pay on time without large fees or reconciliation work.
US bank-to-bank options are strong and still improving. ACH is the default for business payments, Same Day ACH is growing fastest, and instant payments through FedNow and the RTP network can make funds available within seconds where both banks take part. Cards, wires and checks each still have a role.
Nacha, the body that governs the ACH Network, reported 2.2 billion business-to-business ACH payments in the second quarter of 2026, up 9.9% on a year earlier. Same Day ACH handled 435.7 million payments worth $1.3 trillion in the same quarter, up 29.5% by number.
| Method | Best for | Main advantage |
|---|---|---|
| ACH | Repeat B2B customers and routine invoices | Low cost, familiar and scalable |
| Same Day ACH | Time-sensitive domestic payments | Faster settlement through the same ACH workflow |
| Instant payment (FedNow or RTP) | Urgent domestic collections | Funds available within seconds, 24/7, every day |
| Domestic wire | Large urgent invoices | Fast, final bank-to-bank payment |
| Card or payment link | Smaller orders, deposits and new buyers | Convenience and immediate confirmation |
| International account details or wire | Overseas B2B customers | Foreign-currency and cross-border collection |
| Method | Main consideration | Typical limit |
|---|---|---|
| ACH | The customer must authorise or initiate it | Set by the bank |
| Same Day ACH | Cut-off times and bank support | $1 million per payment |
| Instant payment | Both banks must take part | Up to $10 million on FedNow and RTP |
| Domestic wire | Higher fees and manual initiation | Set by the bank |
| Card or payment link | Percentage fees reduce wholesale margin | Set by the card processor |
| International | Exchange rate and intermediary costs vary | Set by the provider |
Margin is earned only when inventory becomes cash, so payment method, payment terms and credit control should be planned together. An ACH payment on 60-day terms can tie up more working capital than a card payment at the time of order, even though ACH is far cheaper per transaction.
Segment customers rather than offering one route to all of them:
The aim is the lowest-friction method that fits the invoice size, credit risk, margin and timing for each customer group.
ACH is familiar, low cost and built for bank-to-bank payments at scale. It suits recurring invoices paid from business checking accounts, whether the customer pushes the payment (an ACH credit) or authorises the wholesaler to pull it (an ACH debit).
The cost difference against cards is material. A 2.5% card cost on a $100,000 invoice is $2,500 before any other charge; the same invoice paid by ACH typically costs a small fixed fee set by the bank. Reserve cards for cases where convenience genuinely wins the sale.
Process still matters. Put the invoice number in the payment reference, keep signed debit authorisations where pulls are used, ask customers to send remittance details and match receipts daily. A cheap payment that is hard to match still costs money in staff time.
Same Day ACH is a faster version of ACH that settles on the same business day when submitted before the bank's cut-off. Each payment can be up to $1 million. Its growth of 29.5% by number in the second quarter of 2026 shows how many businesses now use it for time-sensitive invoices.
It is useful for releasing goods quickly, clearing a credit hold or recovering a payment that missed the normal cycle, and it reduces the pull towards card payments when speed matters. Check the bank's cut-off times and limits: same day does not mean the funds arrive at any moment of the day or on weekends.
The Federal Reserve's FedNow Service and The Clearing House's RTP network both move money between bank accounts in seconds, around the clock, every day of the year. FedNow raised its network limit from $1 million to $10 million on 12 November 2025, and RTP also supports payments up to $10 million, with more than 1,378 participating institutions as of September 2026. Each bank can set its own lower limit.
The Federal Reserve does not offer FedNow directly to businesses, so access depends on whether both the payer's and the wholesaler's banks offer instant payments. Instant payment suits releasing inventory against cleared funds, restoring a credit line or taking payment outside banking hours.
Instant payments are final once sent. Before a high-value payment, verify the beneficiary and the invoice details, and confirm any change to bank details by phone using a number already on file.
Wires suit large, time-sensitive invoices where the cost of delay exceeds the wire fee. They give clear confirmation and fit familiar corporate approval workflows. They are less suitable as a default: fees are higher, initiation is more deliberate and routine customers find them heavier than ACH. For frequent large payers, compare ACH, Same Day ACH or instant payment for a better recurring workflow.
Cards and payment links are useful for new customers, deposits, smaller orders and remote buyers who do not want to set up a new supplier in their accounts payable system before a first order. Percentage fees grow with invoice value while gross margin may not, so a $5,000 invoice and a $200,000 invoice should not automatically use the same method.
Measure processing cost against gross profit, not revenue. A 2.5% fee on an order with a 12% gross margin removes about a fifth of the profit. Keep cards as a sales tool for the first order, and move established high-value customers to bank transfers. Where the business passes on card costs, check the card networks' surcharging rules and state law first.
Some large buyers pay suppliers by virtual card, a single-use card number issued for each invoice. Payment is fast and the remittance data is attached, but the supplier bears the card acceptance fee. Treat a virtual card programme as a pricing decision and agree it in the commercial terms.
Checks persist with some procurement departments and traditional industries, so accepting them may be necessary. They carry mail time, deposit delay, fraud exposure and manual reconciliation. Move customers commercially: offer a clear ACH route, explain the faster options, use a small incentive where it helps and raise it in account reviews, without putting valuable relationships at stake.
Buyers in Canada, Mexico, Europe or Latin America may need more than domestic ACH. Some can pay US dollars by international wire; others prefer to pay in their own currency through a local account route. A multi-currency account helps when foreign currency arrives regularly: it can hold euros or sterling for overseas costs, or convert to dollars under a set policy.
For Mexican customers, compare invoicing in USD and in pesos from both sides, because the party that converts carries the exchange cost. Compare the final dollars received and the time until they can be used. Our guide to USD business accounts for international businesses and the comparison of cross-border payment providers for US businesses cover the account and provider choice.
A payment method cannot fix a generous credit policy. Giving 60-day terms as a matter of course can mean financing buyers without a measured return. Terms should reflect customer quality, margin, order frequency, the value of the relationship and the wholesaler's own cash position.
Large strategic customers may justify longer terms for dependable volume. New buyers may need deposits, shorter terms or credit limits. Track days sales outstanding, the average number of days to collect an invoice, by customer segment, and treat a worsening trend as a commercial signal.
| Term | Meaning | Annualised cost to the seller |
|---|---|---|
| 2/10 net 30 | 2% off if paid in 10 days, otherwise due in 30 | About 37% |
| 1/10 net 30 | 1% off if paid in 10 days, otherwise due in 30 | About 18% |
| 1/10 net 60 | 1% off if paid in 10 days, otherwise due in 60 | About 7% |
The annualised cost is the discount divided by the amount paid, scaled to a year over the days saved. A discount that costs more than the wholesaler's borrowing rate should be offered only where faster cash has a specific use, such as funding a large purchase order.
The most common fraud against wholesalers is not a stolen card but a false instruction: an email, apparently from the wholesaler, telling a customer that its bank details have changed. The customer pays the fraudster, the invoice stays unpaid and recovery is slow, especially on instant or wire payments that are final once sent.
These controls also speed up collections, because customers pay more readily when they are confident the details are genuine.
Helm, the firm's own business account and payments platform, serves wholesalers whose payments sit within an international trade cycle: collecting from customers, holding and converting currencies, paying overseas suppliers and keeping the invoice, customs and tax documents with each payment. Balances are held by licensed partners in each region.
A typical set-up keeps domestic customers on US methods such as ACH, while Helm handles foreign customers and supplier payments across its corridors in Latin America, Africa, the Gulf and South-East Asia. The right set-up depends on customer geography, invoice values, supplier currencies and credit terms. The firm's trade payments service arranges the accounts, and our guide to business bank accounts for wholesalers compares the banking side.
For repeat domestic B2B invoices, ACH is usually the best starting point. Same Day ACH or instant payments help when speed matters, wires suit large urgent invoices, and cards suit cases where convenience justifies the percentage fee.
Yes, selectively. Cards suit new buyers, deposits and smaller orders, but percentage fees become expensive on large invoices, so established customers are better moved to ACH or another bank transfer.
Yes, where both the wholesaler's bank and the payer's bank offer FedNow or RTP payments. Both networks support payments up to $10 million, and each bank can set a lower limit.
Same Day ACH payments can be up to $1 million each. Payments must be submitted before the bank's same-day cut-off to settle that business day.
Set suitable terms at the sale, complete supplier set-up early, make invoices easy to match, confirm material payments before the due date and turn repeated lateness into credit decisions.
Only where faster cash has a clear use. A 2/10 net 30 discount costs about 37% a year in annualised terms, so it is usually dearer than borrowing.
Use the route that is easiest for the customer without excessive exchange or processing cost, such as a USD wire or local foreign-currency receiving details. Compare the final dollars received and the time until they can be used.
Buckingham Capital Consulting has obtained FCA payment institution licences for firms including Nexpay, Orbital and Global Send since 2013, and works with the banks and payment providers that serve business-to-business sellers. Its trade payments team arranges collection accounts, payment routes and currency facilities for wholesalers and distributors selling at home and abroad.
Speak to an expert: WhatsApp +44 7563 115980, Telegram @buckinghamcapital or info@buckinghamcapitalconsulting.co.uk.
This article is general information, reviewed against the regulator’s published requirements on the date shown. It is not legal advice; the regulator’s current publications take precedence.