EDI Protocols Create Reliable Communication Channels for Business Transactions
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)
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)
File Transfer Secure Protocol (FTPS)
Secure File Transfer Protocol (SFTP)
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.