Electronic Data Interchange (EDI) is the computer-to-computer exchange of business data in standard formats. In EDI, information is organized according to a specified format set by both parties, allowing a "hands-off" computer transaction that requires no human intervention or re-keying on either end. All information contained in an EDI transaction set is, for the most part, the same as on a conventionally printed document. Organizations have adopted EDI for the same reasons they have embraced much of today's modern technology-enhanced efficiency and increased profits. Benefits of EDI include: reduced cycle time, better inventory management, increased productivity, reduced costs, improved accuracy, improved business relationships, enhanced customer service, increased sales, minimized paper use and storage & increased cash flow.

Industries currently using EDI include retail, insurance, education, entertainment, mortgage banking, and numerous departments of the U.S. Government. Note, however, that this list is far from complete! As more and more businesses turn to EDI, several standards committees - including the Accredited Standards Committee X12 (ASC X12) and EDIFACT - are working to include appropriate transactions in its body of standards.

A Value-Added Network (VAN) is a private network provider (sometimes called a turnkey communications line) that is hired by a company to facilitate electronic data interchange (EDI) or provide other network services. Before the arrival of the World Wide Web, some companies hired value-added networks to move data from their company to other companies. With the arrival of the World Wide Web, many companies found it more cost-efficient to move their data over the Internet instead of paying the minimum monthly fees and per-character charges found in typical VAN contracts. In response, contemporary value-added network providers now focus on offering EDI translation, encryption, secure e-mail, management reporting, and other extra services for their customers.