Manual invoice processing is outdated. Finance teams today are under pressure to reduce costs, minimize fraud, and speed up accounts payable (AP) workflows. That’s where OCR APIs for invoice automation come in — and not all are created equal.
In this post, we compare leading OCR APIs—Veryfi, AWS Textract, Nanonets and Open-Source OCR tools—to help you choose the best one for automating AP workflows and unlocking real-time insights from invoice data.
Why OCR APIs Matter in AP Automation
Accounts Payable teams often spend hours on manual data entry, matching POs, and handling exceptions. OCR (Optical Character Recognition) APIs solve this by extracting structured data from invoices — enabling touchless processing, automated validation, and faster approvals. However, accuracy, speed, and integration capabilities vary across vendors. If you’re evaluating OCR APIs specifically for invoice automation and AP workflows, consider the following:
- Does the API extract all required fields, including line items, totals, and vendor metadata?
- Is it fast enough to support real-time approvals or syncs with your ERP?
- Can it detect duplicates or fraudulent documents?
- How easy is it to integrate into your current tech stack?
- Will it scale with your global operations and compliance needs?
OCR APIs Comparison for Invoice Processing
| Feature | Veryfi | AWS Textract | Nanonets |
| Data Accuracy | 98–99% field-level (based on structured invoice fields) | Varies by layout and quality | 90–95% (with HITL for higher accuracy) |
| Real-Time Processing | Yes (<3 seconds) | No (batch-style; longer processing times) | Near real-time (may depend on workload or complexity) |
| Line-Item Extraction | Yes, pre-trained and robust | Limited; requires configuration for complex layouts | Yes, supported with customizable models |
| Fraud Detection | Built-in (vision model + classification engine) | Not included | Not native; relies on validation and HITL if needed |
| Ease of Integration | REST API + SDKs (Python, Java, Node, etc.) | Requires AWS IAM setup + service orchestration | Simple REST API; includes model training UI |
| Onboarding Time | Same-day; plug-and-play with no templates | Slower; requires AWS setup and access credentials | 1–2 days including model configuration |
| Security Compliance | SOC 2 Type II, HIPAA, GDPR | SOC 1, SOC 2, FedRAMP (depending on usage) | GDPR, HIPAA |
| Template Dependence | No templates required | May require templates/configs for complex layouts | No; supports adaptive learning |
| Pricing Transparency | Volume-based pricing | Complex tiered pricing based on region | Tiered plans; pay-as-you-go and custom models |
Why Veryfi Leads the Pack
Real-Time, High-Accuracy Processing
Veryfi delivers invoice data extraction in under three seconds, with no delays or batching. It’s designed for real-time AP workflows, where speed and accuracy matter.
No Templates Required
Unlike AWS Textract, Veryfi is pre-trained on millions of invoice formats. It extracts 110+ fields out of the box, including line items, vendor details, and tax breakdowns — no template mapping or training needed.
Integrated Fraud Detection
Veryfi’s fraud detection engine flags duplicates, digitally altered documents, and suspicious submission patterns. For finance teams focused on compliance and risk mitigation, this is a built-in advantage.
Developer-Friendly and Easy to Integrate
Veryfi offers SDKs for Python, Java, Node.js, and more. The REST API is well-documented and easy to test, making implementation seamless for developers.
Global Support
With support for over 38 languages, 91 currencies, and compliance with global data privacy standards, Veryfi is built for international teams and finance operations.
AWS Textract: Powerful, But Requires Heavy Lifting
AWS Textract excels at general-purpose document text extraction. However, it was not purpose-built for AP automation. Key limitations include:
- No out-of-the-box line-item parsing for invoices
- Requires complex AWS IAM setup and permissions
- Lacks fraud detection and real-time performance
- Integration and cost structures are complex
It’s a great tool for enterprises already deep in the AWS ecosystem, but less ideal for finance teams seeking AP-specific features without engineering overhead.
Nanonets: Good for Basic Needs, Less So for Scale
Nanonets is a solid mid-market OCR provider with a user-friendly interface. It offers decent invoice data extraction, but there are trade-offs:
- Accuracy drops on unstructured or novel layouts
- Limited fraud prevention tools
- May not meet enterprise-level security or compliance needs
- Real-time processing speed is inconsistent
It’s a cost-effective choice for startups or SMBs, but scalability and data precision may become issues over time.
What About Open-Source OCR Tools?
You might be wondering about free, open-source alternatives like SmolDocling or Zerox OCR, which have been gaining traction in dev communities for their ability to extract text from images and PDFs into Markdown or JSON formats.
While these tools are lightweight, transparent, and free to use, they’re often not production-ready for AP automation. Here’s why:
| Feature | Open-Source OCR Tools | Veryfi |
| Accuracy on invoices | Varies, needs fine-tuning | 98–99% out of the box |
| Fraud Detection | Not included | Built-in |
| Real-Time Processing | (some) | <3 sec |
| Compliance (SOC2, HIPAA) | Depends on deployment | Fully certified |
| Integration APIs & SDKs | Build-your-own | Ready-to-use REST APIs |
| Field-Level Line-Item Extraction | Manual setup | Automatic & accurate |
| Post-Processing Automation | DIY | Business Rules Engine |
Bottom Line: Open-source tools like SmolDocling are great for academic or low-volume use. But for serious AP automation, where security, speed, fraud detection, and accuracy are mission-critical, Veryfi stands in a league of its own.
Get Started with Veryfi
Veryfi helps AP teams eliminate manual data entry, reduce fraud, and accelerate invoice processing — all through secure, developer-friendly APIs. Start your free trial today and explore our invoice OCR solution with pre-built integrations, real-time response, and industry-leading accuracy.
