Online Credit Management

Evolving Credit and Terms

The world of credit is constantly evolving, and incrementally as technology continues to improve. From what started as trading goods for services, offering monthly account tabs, and handing out credit coins and charge plates to loyal customers has since changed into Diner’s Club cards, further matured into American Express charge cards, and finally into credit cards.

Where It All Began

John Biggins of Biggin’s Bank, introduced the first bank card in 1946 in Brooklyn, NY. The caveat was that these “Charg-It” cards were only useful for local purchases by customers that held an account at Biggin’s Bank. “When a customer used it for a purchase, the bill was forwarded to Biggins’ bank. The bank reimbursed the merchant and obtained payment from the customer.”

The Diner’s Club card was the next type of charge card on the scene, offering an alternative payment for travel and entertainment. In 1949 the Diner’s club card was born and created on a piece of cardboard, and in the next three years, had developed over 20,000 card holders. At the end of a 10 year span, Diner’s Club cards were handed out in plastic form as a charge card where all accrued expenses during a billing cycle had to be paid in full. In the same span of time American Express launched into the credit for travel and entertainment scene and is credited as being the first plastic card to the market in 1959. Both AMEX and Diner’s Club cards were created on a closed-loop system, where card holders had to pay off their balance in full at the end of their billing cycle.

In 1966 an open-loop credit card was introduced, according to MasterCard. This offered card holders the flexibility to open more cash flow by maintaining their card balance from month to month, and not having to pay off their statement in full. However, this would incur users with a monthly interest rate that was added to their bill based on their total purchase amount. By 1987 more banking institutions joined the party to offer their own custom-branded credit card.

Current Credit Issues

With the wide availability of credit cards comes fees for both merchants and consumers. On average, a merchant accepting a card will incur a 2-5% fee based on each consumer’s purchase, whereas the consumer will incur fees if they do not pay their bill in full at the end of the billing cycle. A similar scenario is in effect for bank loans, however the interest rate is wrapped into the duration of the loan, and a monthly billing cycle is set with terms and late charges may be applied if not paid on a timely basis. Merchants work similarly when they offer credit terms to their customers and ultimately become a bank to offer financing for each customer account.

Offering Credit Helps:

• Allow customers to spend more money (increased profit)

• Build relationships and retention

• Increase focus on product, and less on price

There is a solution that still allows the benefits of offering credit terms to your customers, with the advantage of not being a bank for them at the same time. Apruve, an online credit management solution, takes away the burden of becoming a bank for your customers by offering Corporate Accounts on your company’s behalf. The terms stay the same, but the merchant is paid once the sale goes through, instead of waiting around for a month to recoup the financial loss.

Can Apruve help streamline your credit management and financing solutions?

Contact us: 844-4-APRUVE or drop us a line at

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B2B e-commerce success

3 Articles to Help You Be Successful in B2B eCommerce

August 1, 2016


Not every B2B company is well suited to immediately jump into eCommerce. B2B eCommerce is not a simple plugin that solves all your issues instantaneously. An online store requires a lot of time to set up as well as to maintain. Before launching your site, be sure you are aware of what your customer is looking for and what features are needed. Start simple and then later grow your functionality as you grow your user/buys base.
Keys to B2B e-commerce success

Business 2 Community
August 1, 2016


With the dramatic growth in B2B eCommerce it is clear that many businesses can substantially increase revenues with an online store. Before making this leap, be sure to consider the following to increase the chances of your success:

Hire an eCommerce Professional – Setting up and managing an online store is not a simple task. Dedicate a professional to manage it.

Emphasize on Mobile – More and more buyers are shopping on their mobile devices, even for B2B purchases.

The use of Big Data – Online stores can generate a lot of information about how your customers acts. Take notice of these behaviors to better streamline your site.

Simplification of Complex Tasks – B2B transactions typically involve a variety of options that make any transaction a tedious process. Symplify your online store and checkout to increase revenues.

Marketing Integration – Use your E-commerce store to help you see what your customers want, use marketing integration to promote behaviors on those wants.

How eCommerce Wholesale Platforms are Improving Customer Experiences

August 2, 2016


What can your B2B e-commerce site learn from Amazon? It is all about the customer! When constructing your site, be sure to share all the necessary information, make the login process and check out simple and make your site as fluid as possible. Just because it is not B2C, does not mean that there is not a person navigating through your site.
B2B E-Commerce Should Take a Page From Amazon’s Book

Shopify Logo

Shopify + Apruve

The Apruve App in the Shopify App Store is a wholesaler’s dream. Now, Shopify stores can offer their wholesale buyers payment terms and credit with zero risk to them. Buyers apply online for credit with the seller through Apruve’s online credit application (includes seller’s branding and is managed and processed by Apruve). Once approved, buyers can start using their credit with the online store and pay on terms. Sellers receive payment on invoices 24 hours or less after they are generated online (reducing the time it takes to get paid). Buyers then pay Apruve according to the terms offered (Net 30/45/60 or another plan of the seller’s choice).

Why should a wholesaler on Shopify offer payment terms?

It is standard practice for business buyers to pay on terms. If a seller is offering a commodity, buyers will naturally choose to purchase from the seller offering them more time to pay.

Why should a wholesaler on Shopify extend credit?

A line of credit binds you more tightly to your customer. If a buyer has to choose between purchasing from a seller they have an existing credit line with and a seller they don’t, again, they will naturally choose to buy from the the seller they have an existing credit line with.

How does Apruve’s program protect wholesalers from fraud?

Apruve takes on the risk associated with offering credit to buyers. Sellers don’t need to worry about collections, Apruve takes care of that, too. Basically, sellers get paid within 24 hours for invoices and Apruve takes care of the rest.

Does Apruve sound like something you’d like to use in your Shopify store? If so, drop us a line at and we can give you a demo.

Apruve Credit Management

B2B eCommerce Apruved Features – Credit Limit Progress Bar

In this installment of ‘Apruved’ Features, we take a look into the convenience of the checkout modal. The modal is generated by clicking the Apruve button at checkout, where all pertinent information is displayed. One of the options is to pay with a Corporate Account, which showcases the buyer’s available credit in real-time. The credit limit progress bar updates as purchases are made and as invoices are paid, so each buyer knows exactly how much they can spend at a given time. Are you ready to make the switch to easier checkout?

Contact us!