Financial EDI comprises the electronic transmission of payment and remittance information between a payer and their respective banks. Here we will examines the way business-to-business payments are made today and describe the various methods for making financial EDI payments.

Financial EDI allows businesses to replace the labour-intensive activities associated with issuing. Mailing and collecting checks through the banking system with automation initiation, transmission and processing of payment instructions. Thus it eliminates the delays inherent in processing checks. Financial EDI also improves the certainty of the payment flows between corporate bank accounts because the payee’s bank can credit its account on the scheduled payment date and the payer’s can debit its account on the same day.

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