I was recently on a call with a manufacturer evaluating Kodaris. They were looking at our commerce platform, AR automation, customer portals, and payment processing. Card and ACH, all integrated throughout their entire infrastructure: customer-facing, internal, phone orders, and directly into their ERP.
When we got to ACH pricing, I explained that Kodaris charges a flat transaction fee. Currently one dollar per transaction. Whether that payment is ten dollars or a million dollars. No percentage. No additional fees beyond that.
They were genuinely surprised. They told us every other processor they had spoken to charges a percentage on ACH transactions.
That's worth pausing on.
If you're a distributor or manufacturer, probably 70% to 80% of your payments come in via ACH. You're extending credit to your customers on 30 or 60 day terms. They pay electronically when the invoice is due. That's how B2B works.
ACH costs the banks somewhere between 15 and 30 cents to move. It's an electronic transfer. There are no card brand rails, no Visa or Mastercard networks involved, no balance checks or instant money guarantees. It's fundamentally a low-cost transaction.
So when a processor charges you a percentage on ACH, what are you actually paying for? If you're processing $20 million in ACH payments and your processor is taking even a small percentage, that's a significant cost just to collect money your customers already owe you. It's basically a tax on your receivables.
Cards are different. Card transactions run on Visa, Mastercard, and Amex rails. There are real costs associated with those networks. Interchange, assessments, fraud protection, instant settlement. We all understand that and we're all used to it. Kodaris handles card processing and we work hard to optimize those costs for our customers through level three data submission and interchange optimization. We typically save customers anywhere from $100,000 to sometimes up to a million dollars a year on card processing alone.
But ACH shouldn't carry the same pricing model. It's a fundamentally different type of transaction.
Kodaris charges a flat one dollar per ACH transaction. That covers our technology, our infrastructure, and all the NACHA regulations and compliance we handle on your behalf. Customers can agree online, click, sign, and process payments through a streamlined flow that goes all the way into the ERP and auto-applies. No percentage. No hidden fees.
We don't see ACH as a revenue stream to extract more money from distributors and manufacturers. We see it as part of the partnership. Where there are real costs that have to be passed through, like card processing on the Visa and Mastercard rails, we charge for those. But we're not going to penalize you for collecting payments electronically when the underlying cost doesn't justify it.
Part of the reason Kodaris can offer ACH at this cost is our deep partnerships with payment providers, the fact that we own our own technology infrastructure, and the executive relationships we've built over more than 10 years in the space.
ACH pricing is one piece. But there are other costs that add up across the payment and invoicing workflow that are worth examining.
Some providers charge to email an invoice. Per invoice. Some charge per PDF generated. Some charge for customer portal access where your customers can self-serve, look up their account, and print copies of invoices.
On the Kodaris platform, all of that is unlimited and free of charge. Email invoicing, PDF generation, customer self-service portals. Included in the subscription.
Kodaris charges a simple SaaS fee. You get platform updates every seven days. And yes, every company needs to make money. But the power of the Kodaris community is that we're not trying to extract every dollar out of every transaction where we're not providing additional value.
There's another cost that most people don't fully account for. If you have one provider for your customer portal, a different provider for your AP payments, another provider for your front counter terminals, and yet another for your ERP-integrated processing, you're paying multiple fees, managing multiple relationships, and spending operational time reconciling across all of them.
On the Kodaris platform, all of that consolidates under one provider. One plan. Card, ACH, customer portal, ERP integration, commerce. All connected. The savings from consolidation go beyond the transaction fees themselves. The operational overhead of managing and reconciling multiple disconnected payment systems is a real cost that shows up in your finance team's time every single day.
Something to think about as you're working toward your revenue and margin goals. All these costs add up.
So, ask your current payment processor how their fees work. And if you don’t like their answer, reach out to schedule time for a free analysis on what Kodaris Payments could save your company.