Beware of the Hidden Costs of Cloud EDI
It’s important to closely examine the details in your EDI provider’s contract. You might find “hidden” charges that you weren’t expecting, that could make your EDI program cost more than it should. At Effective Data, we are transparent about our billing practices, and they are designed with your best interests in mind. Here are several potentially costly charges you’ll want to watch out for.
Charging by the kilo-character, instead of by volume
There are usually two parts to your EDI bill—translation and transport.
For translation, some EDI vendors charge by the kilo-character (KC), or every 1,000 characters of data. If you send and receive a significant number of larger files, such as healthcare claims, this model may result in a sizable, unwelcome expense. Instead, Effective Data charges by the document. This can deliver significant savings, especially if you frequently transmit larger files.
For a nominal flat fee, Effective Data provides unlimited secured communications including AS2, HTTPS and SFTP. We also offer aggressive VAN (Value Added Network) pricing, if required. Other EDI vendors may charge additional volume fees regardless of mode of transport.
Inflexible, bundled pricing
Many EDI providers bundle their pricing. For example, if you do 10,000 transactions a month, you will always pay the same flat price. However, if you should only do five transactions in a month, they will still charge you the full, flat fee. Effective Data uses bundled, tiered pricing that automatically adjusts to your volume. So if you only do five transactions in a month, you’ll pay slightly more per transaction, but you won’t be charged the full, flat fee.
Charging extra for functional acknowledgements
For every purchase order that you send, you get a functional acknowledgment (997) back. Some vendors charge you separately for each 997. At Effective Data, we only charge you for the initial purchase order. This is one of our key differentiators—we don’t charge you anything to receive 997s. This means that with Effective Data, you can potentially save half of your transaction costs.
Request a free assessment, and we’ll show you how affordable better EDI can be.