Financial EDI
All You Need to Know About EDI in Banking & Finance
Transform Banking with Cutting-Edge EDI Software
Banks and financial institutions are understandably risk-averse. Any new technology that might require the conversion of existing records into a new format may present an opportunity for error. Errors are destabilizing, and banks always weigh the promise of greater speed and efficiency against the opportunity for loss.
However, as payment technology has continued to mature, standards for electronic data interchange (EDI) have evolved to safeguard the security of data transfer – and, with them, the security of financial electronic data interchange (FEDI) as a whole. At this point, FEDI is so widely supported that many businesses discourage cash transactions – including mass transit!
The machine-readable, standardized formats FEDI supports include:
✅ Industry-specific formats
✅Cross-industry formats
✅ANSI X12 (used only in North America)
✅UN/EDIFACT (used everywhere else)
✅Proprietary formats
✅Multi-function formats, such as purchase orders, shipping notices, invoices, and payments
(Financial EDI) FEDI eliminates the need for paper-based transactions, streamlining communication between businesses and banks. It does this by providing a standardized format for financial data that is understood by software systems within financial institutions. Adopting the FEDI standard allows organizations to automate secure data exchange through software rather than relying on manual processes like email or fax.
Services & Features
Modern end-to-end Banking EDI
Financial EDI sets up a seamless handshake between seller and buyer, between buyer and the bank, and between the bank and the seller. Transaction data is formatted into an EDI-standard format the buyer’s bank can understand, and then an Automated Clearing House (ACH) delivers the payment to the seller.
Direct deposits
Before FEDI, people made direct deposits of cash or checks in person (at a bank or an ATM), or asked an institution that owed them money, to mail a check to their bank. However, ATMs are physically insecure. FEDI solves this by prearranging electronic deposits with addenda.
Credit card transactions
Paying with a credit card eliminates the need for cash or checks but comes with security risks like theft and fraud. Newer FEDI technologies enhance security by allowing credit card details to be stored in electronic wallets for in-store payments and enabling bill payments through home banking. Additionally, alias numbers linked to specific sellers help reduce identity theft.
Peer-to-peer payments
Peer-to-peer payments can be made via bank transfers or wire services like Western Union, but they are slow and costly. Peer-to-peer apps offer a faster, low-cost alternative, enabling instant electronic payments.
What Our Customers Are Saying
Tangentia Commerce has helped King’s Crown save both time and money.
Kings Crown 1774
Bernadette Taggio, Co-Owner of Kings Crown
If you are looking for EDI, I would recommend Tangentia Commerce
National Home Products
Ron Perry, GM
With Tangentia Commerce, overall you get a more affordable and better solution
Decor Grates
Owen Carroll, CFO
We recommend Tangentia Commerce to firms looking for IBM WebSphere MQ and Financial Services Industry expertise
Emmet & Co
Maru Pineiro, CCO
Get Started on Your Financial EDI Journey Today
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