EDI has been used by financial corporations in the last decade and during that time it has been increasingly become the prefered payment method since more and more trading partners have seen the advantage provided to their competitors and have consequently started using an EDI platform for their own company.
Many corporations are looking to outsource their payments processing, which include sending an EDI file to the bank. That file will contain all the payment instructions. It will commit all payment orders, wire transfers and then print and mail the payable checks. Now the company can handle electronically all of the payments. From the collection point of view, companies are also transfering the receivables process by having remittance information collected by their bank, through the ACH, lockbox or wire transfer payments, then if being sent electronically to the companies accounts receivable computer system for automatic cash application.
The Student Loan Guarantee Result Transaction Set can be used by guarantee agencies to inform a lender, a school, or both as to the status of a student loan guarantee. The guarantee result information includes, but is not limited to the conditions of approval or denial of a loan guarantee, notice of guarantee and loan disclosure terms, and information regarding previously guaranteed loans.
The Student Loan Transfer and Status Verification Transaction Set is used by lending institutions, guarantee agencies and secondary markets to send and receive information regarding the transfer of ownership of a student loan. It can also be used to verify the status of a student loan prior to and subsequent to the purchase of the loan.
This transaction set is used to file Uniform Commercial Code (UCC) financing statement forms, liens, judgments and other statements of secured interest, and to exchange secured interest filing information.
The Credit/Debit Adjustment transaction set is used to communicate an adjustment to the charges for products or services. It is the equivalent of a paper credit or debit memo. An 812 may be used by a seller to notify its customer of an increase or decrease in the amount the customer is being charged, relative to a previously transmitted invoice.
This transaction set provides the EDI format for transmitting information relating to payments. It is typically used in conjunction with an electronic transfer of funds for payment of goods, insurance premiums or other transactions. The actual funds transfer is often coordinated through the Automated Clearing House (ACH) system, and an 820 may be effectively wrapped in an ACH banking transaction.
The 821 document is used to report a summary of financial transactions such as report balances, detail and summary of financial transactions and other related financial account information..
This transaction set can be used to transmit lockbox (incoming payments) information and totals from a bank or any other lockbox service provider to a company.
The Financial Return Notice transaction set is used to report to the sender of an 820 Payment Order/Remittance Advice document that the 820 document cannot be processed by the financial institution.
The Debit Authorization transaction set can be used to provide information from the paying entity to the financial institution regarding debits that the paying entity has authorized against its account. The financial institution would hold this information then match it against incoming debits to determine whether those debits have been authorized by the account holder.
This transaction set is used to cancel a previously transmitted electronic payment between an originating company and its originating financial institution before funds are released.