ERP-native payment operations built for the speed and volume of distribution.
Built for distributors running Epicor, Sage, and Dynamics. Customer self-service portal, automated reconciliation, Level 2/3 fee optimization, and multi-entity posting. Live in 6-8 weeks.
The Distribution Payment Landscape
High DSO from manual collections and lack of self-service payment options
Multi-entity reconciliation consuming 40+ hours monthly
Invisible interchange fee waste on B2B card transactions without Level 2/3 data
Customer payment portal disconnected from ERP invoice balances
Gateway lock-in preventing fee optimization and routing flexibility
Upgrade-blocked custom posting logic for entity-specific rules
Key Challenges in Distribution
Multi-entity posting complexity is the defining operational challenge for distributor payments
Distributors operating multiple entities — separate legal entities for regions, product lines, or acquired businesses — face a payment posting problem that compounds with each entity. When a customer payment arrives, it must be matched to the correct invoice in the correct entity, posted to the correct GL accounts using the entity's chart of accounts, and reconciled against the correct bank deposit. Epicor P21 distributors with three entities and 2,000 monthly invoices routinely spend 40+ hours per month on this manual matching. Entity assignment errors create posting corrections that cascade through the financial close. PaymentHub eliminates this through entity-aware payment orchestration: each payment is routed to the correct entity based on the invoice origin from the ERP, GL posting follows entity-specific configurations, and reconciliation consolidates all entities into a single exception-based workflow.
Level 2/3 interchange savings represent the largest untapped fee reduction opportunity
Distribution companies processing significant B2B card volume overpay interchange because Level 2/3 data is not captured. The interchange difference between a standard consumer transaction and a Level 3-qualified B2B transaction is 0.3-0.8% — on $5M in monthly card volume, this represents $180,000-$480,000 in annual savings. The barrier is structural: most payment gateways either do not support Level 2/3 fields, or the ERP integration does not pass the required invoice detail (tax amount, PO number, line-item data) to the gateway. Sage 100 and Epicor P21 distributors are particularly affected because these ERPs contain all the required data, but the payment integration does not extract and transmit it. PaymentHub captures Level 2/3 data directly from the ERP invoice record and passes it to the processor automatically.
Customer self-service payment adoption fails when the portal does not reflect ERP reality
Distributors invest in customer payment portals to reduce collections overhead, but portal adoption stalls when customers encounter discrepancies between the portal and their account reality. A payment made by check yesterday does not appear. An invoice that was credited still shows as open. The account balance does not match the last statement. Each discrepancy generates a call to the AR team — the exact overhead the portal was meant to eliminate. Distributors running Dynamics 365 BC or Acumatica face this when their payment portal synchronizes with the ERP on a batch schedule rather than in real time. PaymentHub connects the customer portal directly to ERP invoice and payment data, ensuring that open balances, credits, and payment history reflect the ERP's authoritative state.
ACH adoption is low because customers lack convenient enrollment and incentive
Distribution customers who pay by check would often prefer ACH if the enrollment process were convenient and the incentive were clear. But when ACH enrollment requires a paper authorization form, a phone call to the AR team, and manual bank account verification, the friction prevents adoption. Distributors lose the settlement speed advantage of ACH (1-2 business days versus 3-7 for check) and continue paying the full cost of check handling ($3-$8 per check when deposit processing, float, and reconciliation are included). PaymentHub drives ACH adoption through portal-based enrollment with instant bank verification, recurring ACH scheduling, and configurable ACH-first incentive policies that reward electronic payment adoption.
Gateway lock-in constrains routing optimization and negotiating leverage
Distributors locked to a single payment gateway cannot optimize processing costs through intelligent routing or negotiate competitive rates from multiple processors. A distributor processing $10M monthly through a single gateway has limited leverage because switching gateways means disrupting ERP posting workflows. PaymentHub breaks this lock-in through composable gateway orchestration: multiple processors can be configured simultaneously, payments route to the optimal processor based on transaction characteristics, and ERP posting is consistent regardless of which gateway processes the transaction. The distributor gains both routing optimization and competitive negotiating leverage.
PaymentHub Solutions for Distribution
Payment Operations for Distributors
CFOs, Controllers, and AR Managers at distribution companies with $20M-$500M in annual revenue running Epicor P21, Sage 100, Dynamics 365 BC, or Acumatica, processing 1,000+ invoices monthly across multiple entities and customer segments.
Payment Operations for Wholesale
CFOs, Controllers, and Operations Directors at high-volume, low-margin wholesale businesses where every basis point of interchange waste impacts profitability — processing $5M-$50M in monthly payment volume through Epicor, Sage, Syspro, or Odoo ERPs.
Payment Operations for B2B Services
CFOs, Controllers, AR Managers, and IT Directors at B2B service companies — professional services, consulting, managed services, staffing, and technology services firms — with recurring billing, project-based invoicing, and client payment portal requirements running NetSuite, Dynamics 365, Sage, or Acumatica.
Key Platform Features
ERP Integrations
Industry Benchmarks
40+
hours saved monthly on reconciliation
Typical reduction in manual reconciliation time for distributors with 3+ entities and 2,000+ monthly invoices
10-20%
DSO improvement in 90 days
Typical DSO reduction from automated portal collections and dunning workflows
$180K-$480K
annual interchange savings potential
Level 2/3 data capture savings on $5M monthly card volume at 0.3-0.8% interchange reduction
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Frequently Asked Questions — Distribution Payments
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