EDI Protocols: What You Need to Know

EDI Protocols Create Reliable Communication Channels for Business Transactions

The easiest way to understand EDI protocols is to think of them as languages. Similar to HTML, Javascript, and other computer languages, EDI protocols are interpreted by software.

This is a bit of an oversimplification, but it helps you grasp the general concept. Now let’s dive deeper into what EDI protocols are and the purposes they serve.

What Are EDI Protocols?

EDI protocols are simply software formats used for sending and receiving data. Most organizations using EDI use a variety of EDI protocols for internal and external communication.

When two computers exchange EDI data, they have to use the same EDI protocol for a successful transmission. Otherwise, the computer has no way of interpreting the data.

EDI protocols dictate what software and hardware are required, as well as the level of security used and the availability of the EDI data within. EDI protocols are designed to accommodate specific types of data. However, much of what goes into the design of an EDI protocol is for data security and encryption.

EDI communication needs to be highly secure because governments, hospitals, and other organizations with sensitive data rely on EDI to protect their information. In fact, the X12 protocol specifically meets the requirements of HIPAA so hospitals can ensure their patient records remain confidential at all times.

The 5 Most Common EDI Protocols and Their Primary Functions

Depending on your industry and how many EDI trading partners you have, you could end up using several types of EDI protocols. However, most businesses tend to use the most common protocols we’ve listed below.

Applicability Standard 2 (AS2)

AS2 uses signing, encryption, and MDN conventions to ensure secure and reliable communication. AS2 data transactions are exchanged online via the HTTP or HTTPS protocol.

Unlike traditional HTTP, AS2 requires receipts and digital signatures to maintain a higher level of security. AS2 messages exchange in real-time to help businesses communicate as efficiently as possible.

File Transfer Protocol (FTP)

FTP operates on separate connections between the client and server, effectively making one trading partner the FTP client and the other trading partner the FTP server. To enable communication, the client uses a uses a username and password to connect to the server. The most common use of this protocol is for internal communication because it doesn’t meet the security standards of other EDI protocols available today.

File Transfer Secure Protocol (FTPS)

This is essentially a more secure version of FTP. FTPS is an extension of FTP with additional security measures added — the Secure Sockets Layer (SSL) and Transport Layer Security (TLS) protocols that use cryptographic technology.

Secure File Transfer Protocol (SFTP)

SFTP allows file transfer, access, and management across a secure data connection. SFTP is similar to FTPS in function, but it uses slightly different encryption methods to protect data during transmission.

X12

The X12 protocol is one of the oldest, but still most commonly used EDI protocols in existence. It’s a favorite among government, military, healthcare, and financial institutions around the world.

Utilizing EDI Protocols

When your company wants to exchange EDI data with another organization, you will often need to implement the EDI protocols required for EDI compliance with their system. Unless you have an EDI service provider to handle this process for you, implementing EDI protocols can be technical and time-consuming.

Fortunately, we stay current on every EDI protocol that’s developed, and we take care of this entire process for you.

Learn more about our EDI VAN.