08
Deep dive: zero-fee networks and stablecoins
5 min read · Chapter 8 of 10
Zero-fee networks and stablecoins
Two pitches reach AR teams: bank transfers that cost nothing, and stablecoins that settle invoices in seconds. My view as of October 2026: "zero-fee" is a pricing choice, not a cost breakthrough. For a domestic US or Canadian invoice, a stablecoin isn't cheaper than ACH, and rarely faster than RTP or FedNow in a way that matters. It adds 24/7 finality, but loses remittance data and return rules and adds custody and accounting work. The real traction is cross-border, and in tokenized deposits (bank deposits on a blockchain-style ledger, still the bank's liability) between large corporates. With either pitch, I'd ask which rail the money really moves on and who earns on it.
How "zero-fee" vendors make money
"Zero-fee" almost always means no per-transaction fee to the seller on bank-to-bank payments. I found no vendor claiming every rail is free for everyone. A small seller paying $300 a month for "free" bank transfers and receiving 20 payments a month is paying $15 a payment, far more than an ACH transfer costs a bank.
| Pattern | Who pays | How |
|---|---|---|
| Flat subscription | Seller | A yearly or monthly fee covers unlimited bank transfers, which cost a bank a fraction of a cent per ACH item at the Fed. Low-volume sellers pay a lot per payment |
| Float | Neither side sees it | Funds pass through the vendor's FBO ("for benefit of") account and it keeps the interest; in public filings this is a material share of revenue for platforms that hold customer funds |
| Card fees passed to the payer | Payer | A 2% to 3% surcharge or convenience fee, capped at 3% (US) and 2.4% (Canada), banned in Connecticut and Massachusetts |
| Card interchange still earned | Seller, or payer via surcharge | Bank transfers are free, cards carry a markup. Payer-side networks earn virtual card interchange paid by the supplier |
| Closed-loop book transfer | No one per payment; float and lock-in fund it | When both sides hold balances at the same vendor or sponsor bank, a "payment" is a ledger entry |
| "Blockchain-enabled" network | As above | Pages say blockchain removes middlemen, then list ACH, eCheck and Canadian EFT as payment methods. The ledger holds records, not money |
| Stablecoin via a processor | Seller | About 1.5% at a large payment processor: above its ACH (under 1%, capped at a few dollars), below its cards (about 3% plus a few cents) |
| Direct stablecoin | Both sides | Cents on-chain. The cost sits in the on- and off-ramps (converting bank money to stablecoins and back), wires, custody and screening |
Stablecoins and blockchain vs the bank rails
A stablecoin is a blockchain token whose issuer promises to redeem it one for one in dollars, from a reserve pool.
Stablecoin payment
- Speed
- Seconds to minutes, 24/7; fiat only after the off-ramp, on bank hours
- Cost
- Cents on-chain; near wire cost with ramps; about 1.5% via a processor
- Reversibility
- Final; refund is a new transfer; issuer can freeze under a lawful order
- Remittance data
- Wallet, amount, transaction ID; no standard invoice field
- Regulatory status (Oct 2026)
- US law not in force until Jan 18, 2027; Canada's regulations pending
- Adoption
- 1% of US organizations using or piloting
Bank tokenized deposit
- Speed
- Seconds, 24/7, inside the network
- Cost
- Bank-priced, not public
- Reversibility
- Bank ledger rules, contract
- Remittance data
- Richer data claimed
- Regulatory status (Oct 2026)
- A deposit under bank law, outside GENIUS
- Adoption
- Largest US bank's network reports over $7B a day
ACH / AFT
- Speed
- Same or next day
- Cost
- Pennies at bank level
- Reversibility
- Debits returnable in 2 banking days
- Remittance data
- CCD+ 80 characters; CTX 9,999 addenda
- Regulatory status (Oct 2026)
- Nacha, Payments Canada rules
- Adoption
- $93T in the US in 2025
RTP / FedNow
- Speed
- Seconds, 24/7
- Cost
- A few cents at bank level
- Reversibility
- Final; return by request
- Remittance data
- ISO 20022
- Regulatory status (Oct 2026)
- Live; Canada's RTR not live for B2B
- Adoption
- Growing from a small base
Card
- Speed
- Instant authorization; funded in 1 to 2 days
- Cost
- 1% to 3% interchange, plus fees
- Reversibility
- Chargebacks up to about 120 days
- Remittance data
- Level 2/3 line items
- Regulatory status (Oct 2026)
- Network rules, state surcharge law
- Adoption
- Material, often payer-driven
Wire
- Speed
- Minutes, business hours
- Cost
- Under $1 at the Fed; customer fees bank-priced
- Reversibility
- Final; recall by request
- Remittance data
- ISO 20022 since 2025
- Regulatory status (Oct 2026)
- Mature
- Adoption
- Large, urgent payments
On a $50,000 invoice, ACH costs the banks under a cent, a commercial card roughly $500-1,400 in interchange, a processor's stablecoin checkout around $750, and a direct transfer near wire cost once you pay to get in and out. So for a domestic invoice, weekend settlement is about the only real edge a stablecoin has, and the volumes point the same way: of over $35T moved on-chain in 2025, only about $390B was real payments, and the B2B part was mostly cross-border. A major card network "settling in stablecoins" means its US member banks can settle with it seven days a week, roughly 0.05% of its volume, and sellers see no change.
Stablecoin rules, as of October 2026
- GENIUS Act (US). Enacted July 18, 2025; in force on the earlier of January 18, 2027 or 120 days after final rules. Agencies have only proposals so far (the Fed's came September 29, 2026), so plan on January 18. Then only "permitted payment stablecoin issuers" (PPSIs) may issue: bank subsidiaries, OCC-licensed nonbanks, and state-licensed issuers up to $10B. Full reserves in cash, deposits and short Treasuries, redemption within two business days, no yield, and issuers must be able to freeze tokens under a lawful order. Not a security and not insured, but holders come first on reserves if the issuer fails. Tokenized deposits are excluded; from July 18, 2028, exchanges may offer only compliant coins.
- Today. No PPSI exists yet; issuers hold state licences, and the OCC conditionally approved five crypto and stablecoin trust charters in December 2025. FinCEN's travel rule (sender and recipient details travel with the transfer) applies from $3,000.
- New York. NYDFS proposed Part 202 on June 9, 2026, built to be certified "substantially similar" to GENIUS.
- FASB. A proposal from August 18, 2026 counts a stablecoin as a cash equivalent in one example: the holder can redeem on demand directly with the issuer, and reserves are cash and T-bills of three months or less. As I read it, a seller that cashes out only through an exchange or processor may not qualify.
- Canada. The Stablecoin Act got Royal Assent on March 26, 2026: issuers listed on a Bank of Canada registry, full reserves, redemption at par, no yield; banks stay with OSFI. Regulations and the registry have no dates yet. FINTRAC's travel rule applies from CAD 1,000.
Questions to ask a vendor
- What's your revenue mix? Subscription, transaction fees, card interchange, interest on customer funds.
- Who pays for cards on the "free" plan? If my payers are surcharged, at what cap, where, and who's liable for breaking the rules?
- Which rail moves the money, step by step? Whose account holds funds in transit, and for how long?
- What does "settled" mean on your dashboard? On-chain, your ledger, or cash in my bank? How long until usable cash on a Friday evening?
- How does the invoice reference travel? Which field and standard, and what's the auto-match rate on payments outside your portal?
- When it goes wrong, who eats the loss? Wrong amount, wrong recipient, duplicate, fraud: who decides, how fast, under which contract term?
- For stablecoins: which issuer, and will it be a PPSI by January 18, 2027? Can we redeem directly, at what fee, and do you convert on receipt?
- Who holds the keys and the evidence? Custodian, SOC 2 reports, segregation if you fail, licences, and an attestation (an accountant's report on one claim at one moment, narrower than an audit) our auditors will accept.