If half of B2B sales is taking orders, the other half is collecting payment on time. Your dealers usually buy from you on payment terms and pay through different channels depending on their own cash position. The collection methods you prioritize directly determine your commission costs, your receivables risk, and how long it takes for money to reach your account.
In this article, we explain the three most common methods in B2B, namely virtual POS, bank transfer (EFT), and the Direct Debit System (DBS), in plain language and compare them with each other.
Virtual POS: Online Card Payments
A virtual POS is the infrastructure that lets your dealer pay online with a credit or debit card. It's set up through an agreement with a bank or a licensed payment institution. The dealer enters their card details on the order screen or the current account page and confirms the payment with 3D Secure verification.
Its biggest advantage is speed: the payment is approved instantly, so you can ship the order without waiting. Installment options on corporate cards can also make selling easier, since they ease the dealer's cash flow.
The price is the commission. A rate that varies with your agreement and the number of installments is deducted from every transaction. In addition, the money may not reach your account instantly; it depends on the value date (holding period) in your bank agreement. The possibility of the cardholder disputing a transaction (chargeback) is also a small but real risk.
Bank Transfer and EFT: The Most Common but Most Laborious Method
In Turkey, most dealer payments are still collected by bank transfer. A transfer within the same bank is called "havale," while a transfer between banks is called EFT. Thanks to the FAST instant payment system, interbank transfers up to a certain amount can now go through instantly, 24/7; larger amounts are subject to EFT hours.
Bank transfers usually cost you little; the fee is mostly paid by the sender. But they have two important weaknesses:
- There's no collection guarantee. If the dealer doesn't pay when the payment term ends, all you're left with is follow-up and reminders.
- There's a matching burden. Figuring out which dealer and which invoice a transfer belongs to when it arrives with no description, or the wrong one, takes up the accounting team's time.
That's why, at companies that rely mainly on bank transfers, the real problem isn't commission but delays and reconciliation effort. Problems such as the accounting team comparing bank transactions with current accounts one by one at month-end, or a dealer who has already paid mistakenly showing as "in debt" and having their shipment stopped, are also part of this burden.
What About Checks and Promissory Notes?
In many industries, a significant share of deferred payments is still made with checks and promissory notes. These instruments tie the payment term to a document, but actual collection still depends on the drawer paying at maturity. The risk of bounced checks, portfolio tracking, and the process of submitting them to the bank for collection create extra workload. That's why many companies prefer to gradually shift their check and promissory note volume to more traceable methods such as DBS or online payment.
How Does the Direct Debit System (DBS) Work?
DBS is a system used especially by manufacturers and distributors to back collections from their dealers with a bank guarantee. There are three parties: the main company (you), the dealer, and the bank. The flow broadly works like this:
- The main company signs a DBS agreement with a bank; the bank evaluates the dealers to be included in the system.
- The bank assigns a DBS limit to each dealer it approves. This limit is essentially a line of credit opened for the dealer.
- The main company sends the invoices it issues to the dealer, along with their payment terms, to the bank.
- On the due date, the bank collects the amount from the dealer's account. If there aren't enough funds in the account, depending on the type of agreement, it pays the main company by drawing on the limit granted to the dealer.
For the main company, the biggest gain is that collection becomes predictable on the due date, within the limit. For the dealer, it creates an additional source of financing. On the other hand, setting up the system requires a bank agreement, dealer-by-dealer credit assessment, and collateral processes. The agreement also specifies who bears the interest or commission cost when the limit is used. Since there are different models, such as guaranteed and non-guaranteed, you need to clarify the details with your bank.
It's important not to confuse the DBS limit with the dealer credit limit you set internally. One is the credit the bank extends to the dealer; the other is your internal decision on how much open account you'll allow the dealer. Monitoring both together is the soundest approach.
Comparing the Three Methods
The table below shows general tendencies; actual rates and timelines vary with your bank agreement.
| Criterion | Virtual POS | Bank transfer / EFT | DBS |
|---|---|---|---|
| Cost to you | Per-transaction commission; higher with installments | Usually low | Commission/interest per agreement; setup effort |
| Collection risk | Low (collected at approval), chargeback risk exists | High (no guarantee) | Low within the limit |
| Speed to cash | At approval; deposit depends on value date | When the dealer pays; date uncertain | On the invoice due date, predictable |
| Accounting workload | Low (transactions recorded) | High (matching required) | Medium (invoice submission, limit tracking) |
| Best suited for | Upfront sales, small and frequent orders, new dealers | Trusted, long-standing dealers | High-revenue dealer networks working on regular payment terms |
Building the Right Mix for Your Dealer Network
For most companies, the right answer isn't a single method but a mix that varies with each dealer's profile. In practice, this approach works well:
- New dealers: Work with virtual POS or upfront bank transfer in the first months, and move to payment terms as trust builds.
- Small, frequent orders: The virtual POS commission is often lower than the cost of chasing bank transfers. Your minimum order amount decision also affects your collection cost here.
- High-revenue, regular dealers: A bank-backed structure such as DBS can balance both your risk and the dealer's financing needs.
- For all dealers: Letting dealers see their own payment terms and balance noticeably improves payment discipline.
Connecting Collections to Your Ordering System
Whichever method you choose, seeing collections in the same place as orders and current accounts makes your work easier. In Multistok B2B, when your dealer signs in to the portal, they see their current balance and the amounts that are due and overdue; if they like, they can pay online right there via virtual POS. Dealers with upcoming due dates receive automatic reminders, and payments are posted to the current account synced with your ERP.
Orders that exceed the credit limit go into an approval workflow, so the sales team doesn't have to check balances order by order. If you have a bank-side arrangement such as DBS, how it will be reflected in the portal and the ERP is assessed during setup based on your needs. If you're curious about the dealer-side experience, take a look at our article on letting your dealers see their balance on the portal.
Conclusion
Virtual POS offers speed and certainty, bank transfer offers low cost, and DBS offers predictability backed by a bank guarantee. Each has a different price: commission, follow-up effort, or setup and credit costs. The best choice is to group your dealers by revenue, payment history, and order frequency, and offer each group the method that suits it. Don't forget to confirm commission rates, value dates, and DBS terms with your bank, and accounting entries with your financial advisor / accountant.
If you'd like to see what managing collections together with orders, current accounts, and your ERP on a single screen looks like, you can request a free demo.
Frequently Asked Questions
What Is the Difference Between DBS and Checks or Promissory Notes?
With checks and promissory notes, collection depends on the drawer paying at maturity. With DBS, the bank can make the payment from the limit it grants the dealer, according to the agreement terms, so collection is more predictable for the main company.
Can I Pass the Virtual POS Commission on to the Dealer?
Commercially, it's possible to apply a payment term surcharge or price difference, but you should consult your financial advisor / accountant and your bank on how it should be reflected on the invoice and whether it aligns with your agreement.
How Can Matching Bank Transfer Payments Be Made Easier?
The first step is reminding dealers to include their account code in the payment description. A more lasting solution is a portal where dealers can see their balance and payment terms, combined with payments being posted regularly to the current account in the ERP.
Can a Small Company Use DBS?
Since DBS relies on the bank's credit assessment, it depends on the company and dealer profile. If your number of dealers and revenue are limited, it may be more practical to start with virtual POS and clear credit limits.
