Electronic Data Transfer

Electronic Data Transfer

Electronic data interchange is the transfer of data from one computer system to another by formatting standardized message without the need for human intervention. Electronic data interchange allows many companies - possibly in different countries - to exchange documents electronically. Data can be exchanged through serial links and peer-to-peer networks, although most exchange dependencies are currently dependent on the Internet for connectivity.

The electronic data interchange message contains a string of data elements, each representing a singular fact, such as a value, product model number, and after it, is separated by a delimiter. The entire string is called the data segment. One or more data segments created by the header and the trailer have a transaction set, which is the electronic data interchange unit (transmission of the message) of the transmission. A transaction set often contains the same thing that is usually contained in a specific business document or form.

Electronic data interchange applies to orders like purchase orders, invoices, shipping notices and commission sales reports, as well as other important or classified information. For example, an insurance company can verify that an applicant has a driving license through electronic data interchange exchange.