Electronic Data Interchange (EDI)

Electronic Data Interchange (EDI) Overview

What is Electronic Data Interchange (EDI) Software?

Electronic Data Interchange (EDI) software enables the sharing of data between multiple devices. EDI is commonly used for the transfer of documents from one business to their partners. Once the data to be transferred is selected, EDI software extracts the data, usually from an ERP system, and translates the data to a standardized format, so that the recipient will be able to view it. EDI software also typically includes security features to ensure that sensitive data is protected while it is transferred.

EDI software also allows for the automation and scheduling of data transfers, so businesses can set up regular data transfers that will occur automatically.

Features and Capabilities

  • Data Extraction

  • Data Formatting with support for XML

  • Secure Data Transfer

  • Data Security

  • Transfer automation and scheduling


EDI Vendors typically don’t provide public pricing information, though vendors can be contacted for quotes. EDI software is priced in 2 ways depending on the software, either per transaction, or with an overall subscription model that either includes unlimited transactions, or a set amount per month. Many EDI vendors also include a one time set up fee in order to implement the software with your businesses other systems. Depending on feature needs, businesses can expect to pay around $1.00-$3.00 per transaction.


When comparing different EDI, consider the following aspects of each product offering.

  1. Price per transfer: It is essential to consider how much each data transfer costs with each EDI software. How many transfers do you need to make each month? If an EDI tool is subscription-based, does it include the volume of transfers you need to commit?

  2. Security Features: All EDI software includes security features of some kind to protect your data during transfer. If your business deals with very sensitive information, or must meet regulatory compliance standards, it may be worth considering an EDI tool with more robust or specialized security features. If you aren’t as concerned about data security, you may be able to pursue more affordable EDI options.

  3. Formatting Options: Most EDI tools can read common data types and translate them into XML. Some businesses may use specialized data types that aren’t supported by every EDI software. If your business uses a file type that isn’t commonly used, make sure it is supported by the EDI software you choose.

Electronic Data Interchange (EDI) Products

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