B2B Payments: A Complete Guide

The global B2B payments market reached US$97.88 trillion in 2025 and is projected to grow to US$282.48 trillion by 2034. Despite this scale, the average business still processes B2B payments through a single gateway, paying 2-5% per transaction in combined fees. As a result, on US$500,000 in monthly B2B payment volume, that translates to US$10,000-US$25,000 in avoidable annual costs.

The core problem is not the payments themselves. Instead, the inefficiency comes from routing every B2B transaction through the same processing rail regardless of amount, urgency, or geography. For example, a US$75,000 supplier payment processed through a card gateway costs US$2,175-US$2,625 in fees. By comparison, the same transaction via wire transfer costs US$20-US$50. Through ACH, it costs under US$5.

Multi-rail B2B payment processing solves this by matching each transaction to its lowest-cost, fastest-settling rail. This guide compares five platforms for B2B payments, provides a decision framework for choosing the right rail per transaction, and shows how businesses reduce processing costs by 40-60% without adding operational complexity.

Key takeaways

• The B2B payments market reached US$97.88 trillion in 2025, yet most businesses still overpay 2-5% per transaction through single-gateway processing
• Multi-rail strategies match each B2B transaction to its optimal rail (ACH, wire, stablecoin, or network), cutting costs by 40-60%
• Stripe charges 2.9% + US$0.30 per card transaction; Bill.com charges US$0.59 per ACH; Melio offers 5 free ACH payments per month
• Payoneer charges 1% for ACH receiving plus 0.5-3.5% FX conversion; Wise Business offers 0.4-0.6% FX at mid-market rates
• Bancoli’s Global Payment Gateway provides free ACH, free stablecoin, free network payments, and interbank FX rates with 0% FX on 20+ currencies. No card processing, purpose-built for non-card B2B rails

What are B2B payments, and how do they differ from B2C?

B2B payments are financial transactions between businesses, covering everything from supplier invoices and contractor payments to software subscriptions and wholesale purchases. Unlike business-to-consumer (B2C) transactions, these payments involve larger amounts, longer payment cycles, and multi-step approval workflows.

Transaction characteristics that define B2B payments

Several structural differences separate B2B from B2C payment processing. First, transaction size is dramatically larger. The average B2B payment ranges from US$5,000 to US$50,000, compared to US$50-US$200 for typical B2C purchases. At 3% processing fees, a US$50,000 B2B payment costs US$1,500 to process, while a US$100 consumer purchase costs just US$3. Consequently, this 500x cost difference makes payment rail optimization critical for B2B.

Second, B2B payment cycles are longer. Net-30, net-60, and even net-90 terms are standard, compared to the instant settlement consumers expect. This extended timeline creates cash flow gaps that affect working capital management and supplier relationships.

Third, B2B payments require approval workflows. Purchase order matching, multi-level authorization, and compliance documentation add complexity that consumer payments never encounter. Modern B2B payment platforms automate these workflows to reduce processing time and human error.

Why B2B payment costs compound faster than B2C

Because B2B transactions are 25-100x larger than consumer payments, percentage-based processing fees compound dramatically. For instance, a business processing US$1 million monthly through a card gateway at 2.9% pays US$29,000 in annual fees. In contrast, the same volume through ACH costs under US$6,000 annually. Through network payments between accounts on the same platform, the cost drops to zero.

This cost multiplier effect is why B2B payment optimization delivers outsized returns compared to B2C payment optimization.

The true cost of B2B payment processing in 2026

Finance teams often evaluate B2B payment costs by looking at the gateway fee alone. In reality, the total cost includes three compounding layers that most platforms obscure.

The three-layer cost stack

Every B2B payment processed through a card-based gateway accumulates fees across multiple layers. First, the base processing fee ranges from 2.5% to 3.5% depending on the provider. Second, for international B2B transactions, a cross-border surcharge of 1-1.5% applies when the buyer and seller operate in different countries. Third, currency conversion markups of 1-4% are added on top of the mid-market exchange rate.

As a result, a single international B2B card transaction can cost 4.5-8% of the transaction value. On a US$50,000 invoice, that represents US$2,250-US$4,000 in fees before the payment reaches your account.

How legacy single-gateway processing erodes margins

Many businesses still route all B2B payments through their original payment processor out of habit rather than strategy. While this approach made sense when card processing was the only digital option, that is no longer the case. Today, ACH, wire transfers, stablecoins, and network payments offer dramatically lower costs for the transaction sizes typical in B2B.

The margin erosion is most visible on high-value transactions. For example, processing ten US$50,000 payments monthly through a card gateway at 2.9% costs US$14,500 per month, or US$174,000 annually. In contrast, the same ten payments via wire transfer at US$25 each cost US$250 per month, totaling US$3,000 annually. That difference represents a 98.3% cost reduction.

B2B payment cost comparison across transaction sizes

Four B2B payment rails compared

While credit cards remain common for small B2B purchases and consumer-facing transactions, they are not cost-efficient for mid-to-large B2B payments. The following four rails handle the majority of B2B payment volume at significantly lower cost.

ACH transfers

Automated Clearing House transfers process USD-denominated bank-to-bank payments through batch processing networks. Typically, settlement occurs in 1-3 business days, and fees are flat regardless of transaction amount.

ACH works best for US-based B2B transactions between US$1,000 and US$100,000, recurring invoices, and cost-sensitive payments where same-day settlement is not required. Flat fees range from US$0 to US$5 per transaction depending on the platform, with no percentage-based charges. Consequently, a US$50,000 ACH payment costs the same as a US$500 ACH payment.

Wire transfers (SWIFT)

Direct bank-to-bank transfers via SWIFT or correspondent networks provide global reach across 200+ countries. Generally, settlement takes 1-5 business days depending on routing and intermediary involvement.

Wire transfers are optimal for international B2B transactions exceeding US$25,000, supplier payments requiring full audit trails, and situations demanding payment certainty. Flat fees range from US$15 to US$50 per transaction, though foreign exchange markups of 0.5-3% may apply depending on the provider. Therefore, choosing a platform with interbank FX rates rather than bank markup rates can save 1-3% on every international wire.

Stablecoin payments

Digital currency transfers on blockchain networks settle in minutes with minimal intermediary involvement. Moreover, transactions process 24/7 regardless of banking hours, weekends, or holidays.

Stablecoin payments work best for cross-border B2B transactions requiring same-day settlement, payments to regions where traditional banking is expensive or slow, and urgent weekend or after-hours payments. Network fees typically fall under 1%, and no intermediary charges apply. Furthermore, USD-pegged stablecoins like USDC eliminate currency conversion entirely for USD-denominated B2B transactions.

Network payments

Direct transfers between accounts on the same financial platform occur instantly with zero fees. In other words, no external processing, intermediary banks, or currency conversion charges apply when both parties transact in the same currency.

Network payments are ideal for frequent B2B transactions between known trading partners, supply chain ecosystems where multiple parties use the same platform, and situations where eliminating all transaction costs is the priority. With 20 monthly B2B transactions averaging US$5,000 each, network payments save approximately US$500-US$1,000 per month compared to card processing.

When to use each B2B payment rail

5 platforms for B2B payment processing compared

Several platforms facilitate B2B payment processing, but they differ significantly in supported rails, fee structures, automation capabilities, and FX conversion costs. Choosing the right platform depends on your transaction profile, geographic corridors, and cost optimization priorities.

Stripe

Stripe specializes in developer-friendly payment infrastructure with robust card processing capabilities. The platform charges 2.9% + US$0.30 for domestic card transactions, with an additional 1% surcharge for international cards and 1% for currency conversion. ACH processing costs 0.8%, capped at US$5 per transaction, while invoicing adds 0.4-0.5% per paid invoice.

With support for 135+ currencies across 45+ countries, Stripe provides extensive API customization for B2B payment workflows. However, the platform does not offer stablecoin payment acceptance, multi-rail invoice embedding, or cash flow acceleration tools like early payment discounts. As a result, it excels at card-based B2B acceptance for SaaS and digital services but becomes expensive for large transactions where 2.9-4.9% fees compound quickly.

Bill.com

Bill.com focuses on accounts payable and accounts receivable automation with built-in approval workflows. ACH payments cost US$0.59 per transaction (free if the recipient is also an active subscriber). Card payments cost 2.9% of the transaction amount, international wires cost US$19.99 per transaction, and instant transfers cost 1.0% with a US$1.00 minimum.

The platform integrates with major accounting software including QuickBooks, Xero, and NetSuite, making it popular for mid-market B2B payment automation. However, it does not support stablecoin payments, multi-rail invoice embedding, or interbank FX conversion. In addition, the platform is primarily US-focused and lacks the multi-currency account capabilities that globally operating businesses require.

Melio

Melio targets small and medium businesses with a streamlined B2B payment interface. The platform offers a free Go plan with 5 free ACH transfers per month, with additional transfers costing US$0.50 each. Card payments cost 2.9% of the transaction value, while international payments cost a flat US$20 per transaction.

This zero-cost entry point makes Melio accessible for small businesses just beginning to optimize B2B payments. On the other hand, the platform does not support stablecoin payments, multi-currency accounts, or embedded multi-rail invoicing. Furthermore, it is designed primarily for US domestic B2B payments, and international capabilities are limited to 80+ countries with ACH-only settlement in USD.

Payoneer

Payoneer targets freelancers, marketplaces, and SMBs with global payment receiving capabilities. Receiving fees include 1% for ACH bank transfers and up to 3.99% for card-funded payments. Additionally, currency conversion charges range from 0.5% to 3.5% depending on the transaction type, and an annual inactivity fee of US$29.95 applies if the account receives less than US$2,000 in 12 months.

The platform integrates with major marketplaces like Amazon, Fiverr, and Upwork, making it popular for marketplace-connected B2B payments. However, it does not support stablecoin acceptance, multi-rail invoice embedding, or cash flow acceleration tools. As a result, for direct B2B invoicing with multi-rail acceptance, the feature set falls short compared to dedicated B2B payment platforms.

Bancoli Global Payment Gateway

Unlike the platforms above, Bancoli’s Global Payment Gateway embeds multiple non-card payment rails directly into each invoice through Instant Checkout. The seller creates an invoice, selects payment options (ACH, wire transfer, stablecoin, or Bancoli network payments), and the buyer pays using their preferred rail without leaving the invoice.

Plans start from US$29 per month. ACH acceptance through Instant Checkout is free, as is stablecoin acceptance. Similarly, network payments between Bancoli accounts are free and settle instantly. Wire transfer acceptance costs from US$20-US$25 depending on plan tier.

Importantly, Bancoli does not process card payments. The platform is purpose-built for B2B settlement across non-card rails, which eliminates the 2-3% card processing fees that erode margins on large B2B transactions. On a US$50,000 transaction, for instance, avoiding card fees saves US$1,450-US$2,200 per payment.

The Global Payment Gateway accepts B2B payments in any currency and converts them at real interbank FX rates, funding your USD account directly. This creates natural hedging for international receivables. From there, you can fund operations, send payouts to suppliers with 0% FX fees on 20+ currencies (or 1% Super Saver fees on 15+ additional currencies), or bring funds back home at the same interbank rates.

Additionally, Bancoli’s AI assistant analyzes invoice patterns and suggests optimal early payment discount terms. When a buyer accepts and pays early, the invoice becomes “Guaranteed,” providing payment certainty and pre-maturity fund access. This mechanism reduces Days Sales Outstanding by 15-20 days without factoring fees.

For the full fee schedule, visit Bancoli’s pricing page.

How B2B payment platforms compare

Decision framework: matching B2B payment methods to transaction profiles

The best approach to B2B payments is not a single method. Instead, it is a strategy that matches each transaction to its optimal rail based on four factors.

By transaction size

Transaction amount is the strongest predictor of which rail minimizes B2B payment cost. Under US$5,000, convenience often outweighs percentage fees, making card payments or ACH reasonable choices. Between US$5,000 and US$50,000, ACH handles US-based transactions efficiently while wire transfers serve international needs. Above US$50,000, flat-fee rails (wire, stablecoin, network) deliver 90-99% cost savings compared to percentage-based processing.

By payment urgency

Speed requirements narrow the rail options significantly. For instant settlement, stablecoin or network payments are the only options, both available 24/7 including weekends and holidays. If same-day to 2-day settlement is sufficient, wire transfers serve international needs while same-day ACH handles domestic transactions. When 2-5 days is acceptable, standard ACH provides the most cost-effective option for USD-denominated B2B payments.

By geographic corridor

Client and supplier location determines which rails are accessible for B2B payments. US domestic transactions benefit from ACH efficiency and zero-fee processing on platforms like Bancoli and Melio. Transactions between the US and Europe, Latin America, or Asia typically use wire transfers through SWIFT networks. Emerging market corridors where traditional banking is expensive benefit from stablecoin payments. Within platform networks, geography becomes irrelevant because both parties transact instantly regardless of location.

By payment frequency

Payment frequency affects the compounding impact of B2B processing fees. One-time large payments favor wire transfers where flat fees are negligible. Monthly recurring payments work well with ACH for predictability and low cost. High-frequency transactions between regular trading partners benefit most from network payments, where zero fees multiply savings across every transaction. With 20 monthly B2B transactions of US$5,000 each, network payment savings reach US$500-US$1,000 per month compared to card processing.

Real-world B2B payment scenarios

Scenario A: A US software company pays a European development agency US$40,000 monthly. In this case, wire transfer is optimal because the flat fee of US$20-US$50 represents less than 0.13% of the transaction value. By comparison, the same payment through Stripe would cost US$1,160-US$1,960 in combined card and international fees.

Scenario B: A manufacturing company pays 15 domestic suppliers between US$2,000 and US$10,000 each monthly. ACH handles all 15 payments for free on Bancoli (or US$0.50 each on Melio). Previously, processing through card payments cost US$870-US$4,350 monthly. After switching to ACH, the cost dropped to zero.

Scenario C: Trading partners exchange 25+ B2B transactions monthly within their supply chain network. Network payments eliminate all transaction costs. At US$8,000 average per transaction, annual savings exceed US$7,000-US$14,000 compared to card processing.

Scenario D: A US consultancy invoices 30 international clients between US$3,000 and US$20,000 monthly. Multi-rail invoicing through Bancoli’s Instant Checkout lets each client choose ACH (free for US clients) or wire transfer (from US$20 for international clients). Previously, processing all invoices through PayPal cost US$3,500-US$7,000 monthly in fees and FX markups. After switching, the cost dropped to under US$500.

How B2B payments work on Bancoli’s multi-rail platform

Bancoli’s Instant Checkout follows a four-step process that eliminates the friction between B2B invoicing and payment settlement.

Step 1: Create an invoice with multi-rail options

You create an invoice using Bancoli’s multi-currency invoicing tool. Before sending, you select which payment rails to offer through the Global Payment Gateway: ACH, wire transfers, stablecoins, or Bancoli network payments. Bancoli’s AI assistant can suggest early payment discount terms, such as 2% off for payment within 10 days on net-30 terms.

Step 2: Client selects and pays via Instant Checkout

Your client receives a professional invoice with all selected B2B payment methods embedded directly in the document. They choose their preferred rail and complete payment without contacting your team separately. If they pay within the early discount window, the discount applies automatically.

Step 3: Payment settles with automatic FX conversion

Payments deposit into your Global Business Account. International B2B payments arriving in foreign currencies convert automatically at real interbank FX rates, funding your USD account. This creates natural hedging for your receivables and eliminates the 1-4% FX markups charged by banks and traditional platforms.

Step 4: Deploy funds with zero FX fees

From your USD account, you can fund operations directly, send payouts to suppliers in 20+ currencies at 0% FX fees (or 1% Super Saver on 15+ additional currencies), or repatriate funds home at the same interbank rates. The full B2B payment cycle, from invoice to deployment, operates within one platform.

The 5-minute B2B payment cost health check

Most businesses underestimate their actual B2B payment processing costs because fees are spread across multiple line items and providers. This diagnostic reveals your optimization opportunities.

Step-by-step assessment

1. Pull a report of all B2B payments received and sent in the last three months
2. Calculate the average cost per transaction across all rails (include gateway fees, FX markups, intermediary charges, and receiving fees)
3. Identify which percentage of your B2B transactions exceed US$5,000. These are the highest-savings candidates for rail optimization
4. Count how many separate platforms or processors you currently use for B2B payments
5. Estimate the monthly hours spent reconciling payments across fragmented systems
6. Calculate total annual B2B payment costs as a percentage of revenue processed

What your numbers reveal

• Under 1% total cost per transaction: Your B2B payment processing is efficient. Monitor quarterly for optimization opportunities.
• 1-2% total cost: Room for significant improvement. Shifting large transactions to flat-fee rails can reduce costs by 30-50%.
• 2-4% total cost: Typical for single-gateway card processing. Immediate savings available by adding ACH and wire transfer rails for B2B transactions above US$5,000.
• Over 4% total cost: Significant margin erosion. Prioritize multi-rail B2B payment acceptance and FX optimization. Platforms like PayPal with 3-4% FX markup plus transaction fees commonly push total costs into this range.

As a result, this health check shifts the conversation from “which processor should I use” to “which rail should each B2B transaction use.”

B2B payment security and compliance essentials

Security is foundational to any B2B payment operation. As transaction volumes and digital processing increase, the attack surface for fraud grows proportionally as well.

Fraud prevention across payment rails

B2B payment fraud costs businesses billions annually. Fake invoices, business email compromise, and account takeovers are the most common vectors. To address these threats, multi-rail platforms reduce risk by requiring verification at each step: invoice creation, payment rail selection, and settlement confirmation. In addition, ACH and wire transfers reduce risk by limiting the number of intermediaries that touch your funds.

Regulatory compliance

Modern B2B payment processing requires compliance across multiple frameworks. PCI DSS governs card data security (relevant even if your platform does not process cards, since clients may reference card data). AML and KYC regulations require identity verification for both sending and receiving parties. GDPR applies when processing payments involving EU-based businesses. Platforms that embed these controls into their workflow, rather than requiring manual compliance checks, reduce both risk and administrative overhead.

Multi-level authentication and approval workflows

B2B payments benefit from tiered authorization based on transaction value. For transactions under US$5,000, single approval may suffice. Between US$5,000 and US$50,000, two approvals provide adequate oversight. Above US$50,000, executive sign-off plus secondary verification adds the necessary security layer. Modern B2B payment platforms automate these workflows to enforce policy without slowing down operations.

Measuring B2B payment optimization: key KPIs

Tracking the right metrics validates whether your B2B payment strategy is delivering measurable results.

Cost per transaction: Calculate your average processing cost across all rails. Target: under 1% of transaction value. If you are above 2%, immediate optimization opportunities exist.

Days Sales Outstanding (DSO): Lower DSO indicates faster collection and stronger cash flow discipline. Target: under 30 days. Bancoli’s early payment discounts and Guaranteed Invoices help reduce DSO by 15-20 days.

Staff time on payment tasks: Measure hours spent on manual reconciliation, invoice creation, and payment tracking. Multi-rail platforms reduce this by consolidating all B2B payments into one dashboard.

Error and dispute rates: Fewer issues with reconciliation and vendor inquiries indicate your system is functioning as intended. Digital platforms with automated matching reduce errors by 60-80% compared to manual processing.

Cash flow predictability: The more consistent your B2B inflows, the more control you have over spending, investment, and supplier relationships. Multi-rail acceptance with early payment incentives improves predictability significantly.

Payment method adoption rate: Track which percentage of clients use each payment rail after you offer multi-rail options. This reveals which rails to prioritize and which clients need communication about lower-cost alternatives.

Conclusion

B2B payments in 2026 are not about finding one perfect processor. Instead, they require a multi-rail strategy that matches each transaction to its lowest-cost, fastest-settling rail.

Traditional platforms like Stripe handle card-based B2B payments effectively but charge 2.9-4.9% per transaction. Bill.com automates AP/AR workflows but charges US$0.59 per ACH and US$19.99 per international wire. Melio offers free ACH for small businesses but limits free transactions to 5 per month. Payoneer serves marketplace-connected businesses but charges 1% receiving plus up to 3.5% FX.

Three steps to optimize your B2B payment processing:

1. Audit your current costs using the 5-minute health check above. Most businesses discover they pay 2-4% per B2B transaction unnecessarily
2. Implement multi-rail processing through a platform like Bancoli’s Global Payment Gateway to give clients ACH, wire, stablecoin, and network payment options per invoice
3. Optimize quarterly by shifting B2B transactions above US$5,000 from percentage-based rails to flat-fee rails, targeting 40-60% cost reduction

Ultimately, multi-rail B2B payment processing transforms payment operations from a fixed cost center into an optimizable function that improves with every transaction routed to its optimal rail.

Frequently asked questions

What are B2B payments, and how do they differ from consumer payments?

B2B payments are financial transactions between businesses, covering supplier invoices, contractor payments, software subscriptions, and wholesale purchases. They differ from B2C payments in three key ways: transaction size (US$5,000-US$50,000 average vs. US$50-US$200 for B2C), payment cycles (net-30 to net-90 terms vs. instant settlement), and approval workflows (multi-level authorization vs. single-click checkout). These differences make payment rail optimization critical for B2B because percentage-based fees on larger transactions compound into significant annual costs.

How much does B2B payment processing cost in 2026?

Costs vary significantly by platform and payment rail. Card processing through Stripe costs 2.9% + US$0.30 per transaction, plus 1% for international cards. By comparison, Bill.com charges US$0.59 per ACH payment, while Melio offers 5 free ACH transfers per month. Payoneer charges 1% for ACH receiving. Meanwhile, Bancoli provides free ACH through Instant Checkout, free stablecoin acceptance, and wire transfers from US$20. On a US$50,000 B2B payment, the cost difference between card processing (US$1,450+) and ACH (US$0-US$5) represents a 99% cost reduction.

How do Stripe, Bill.com, Melio, and Payoneer compare for B2B payments?

Stripe excels at developer-friendly card processing (2.9% + US$0.30) with robust APIs but lacks stablecoin support and multi-rail invoicing. Bill.com automates AP/AR workflows with US$0.59 ACH and integrates with QuickBooks and Xero, but has limited international capabilities. Melio offers the lowest entry cost with free ACH (5/month) but is primarily US-focused. Payoneer serves marketplace-connected businesses with global reach but charges 1% receiving plus 0.5-3.5% FX conversion. In comparison, Bancoli provides free ACH, free stablecoin, wire from US$20, and 0% FX on 20+ currencies, all embedded in multi-rail invoices through Instant Checkout.

What is the cheapest way to process B2B payments?

Network payments between accounts on the same platform are the cheapest option: zero fees with instant settlement. For B2B payments where network access is not available, ACH transfers offer the next lowest cost at US$0-US$5 per transaction regardless of amount. Meanwhile, wire transfers cost US$15-US$50 flat and are most cost-effective for international transactions above US$25,000. Stablecoin payments, in turn, cost under 1% and settle instantly. Bancoli’s Global Payment Gateway offers free ACH, free stablecoin, and free network payments, making it one of the most cost-effective platforms for multi-rail B2B processing.

Can I process B2B payments without credit card fees?

Yes. Non-card payment rails eliminate the 2-3% processing fees that card networks charge on B2B transactions. For example, ACH handles US-denominated payments at flat fees under US$5, while wire transfers process international B2B payments at US$15-US$50 flat. Similarly, stablecoin payments settle instantly at under 1%. Bancoli’s Global Payment Gateway specifically focuses on non-card B2B rails, offering free ACH and stablecoin acceptance. For B2B transactions above US$5,000, avoiding card fees saves hundreds to thousands per payment.

How do multi-rail B2B payment platforms work?

Multi-rail platforms consolidate multiple payment methods into a single dashboard. Instead of managing separate relationships with ACH providers, wire transfer services, and card processors, you access all rails through one account. On Bancoli, the seller creates an invoice, selects which payment rails to offer (ACH, wire, stablecoin, or network), and the buyer chooses their preferred method through Instant Checkout. All B2B payments, regardless of rail, deposit into a unified Global Business Account with consolidated reporting and reconciliation.

What KPIs should I track for B2B payment optimization?

Six essential KPIs measure B2B payment performance: cost per transaction (target under 1% of transaction value), Days Sales Outstanding or DSO (target under 30 days), staff time on payment tasks (measure hours spent on manual reconciliation), error and dispute rates (lower is better), cash flow predictability (consistency of inflows), and payment method adoption rate (which rails clients prefer). These metrics validate whether your shift to multi-rail B2B processing is delivering measurable cost and efficiency improvements.

How do international B2B payments differ from domestic ones?

International B2B payments add three complexity layers: currency conversion (FX markups of 0.5-4% above mid-market rates), compliance requirements (AML/KYC regulations vary by country), and settlement timing (SWIFT routing through intermediary banks can take 1-5 days). The FX conversion cost is often the largest hidden expense. A 3% bank markup on US$100,000 in monthly international B2B payments costs US$36,000 annually. Platforms offering interbank FX rates, like Bancoli with 0% FX fees on 20+ currencies, eliminate this cost layer entirely.