Electronic data interchange (EDI) enables organisations to send transaction-related information directly between computer systems in an agreed machine-readable structure. It is used for documents such as purchase orders, invoices, customs declarations and payment-related notices. Messages may travel through general electronic communications networks or infrastructure operated by banks. If an EDI transaction contains an instruction to make a payment, the actual transfer is carried out within the banking system. International standards coordinate the format and content of such exchanges. EDIFACT, developed under the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT), applies to administrative, commercial and transport-related transactions.
Source: European Central Bank (ECB) (source). This glossary entry is an independently worded adaptation of the cited information.