Interchange

DEFINITION of 'Interchange'

A transfer of information from one computer to another electronically. In business this typically refers to a Electronic Data Interchange (EDI), which is a system used to communicate business and financial transactions between parties. EDI usually takes the form of direct transactions between computers, databases and order systems.

BREAKING DOWN 'Interchange'

The development of the internet gave EDI a real shot in the arm. Nevertheless, many EDI transactions use XML format instead of traditional EDI data formats such as X12 or EDIFACT. These transaction are sent via web using standard http protocol. Interchange can also refer to a web application server for e-commerce which is used to build customized e-commerce solutions.

RELATED TERMS
  1. ASC X12

    The Accredited Standards Committee (ASC) X12 is a body that develops ...
  2. Value-Added Network (VAN)

    A private network provider hired by a company to facilitate electronic ...
  3. Secure Electronic Transaction - ...

    A form of protocol for electronic credit card payments. As the ...
  4. Transaction Identifier

    A unique identifier assigned by a business to each transaction ...
  5. Interchange Rate

    A fee charged by banks that covers the cost of handling and credit ...
  6. Durbin Amendment

    A part of the Dodd Frank Wall Street Reform and Consumer Protection ...
Related Articles
  1. Personal Finance

    Understanding Electronic Commerce

    Electronic commerce is the buying and selling of goods and services over an electronic network.
  2. Investing

    Basics Of The Mechanics Behind Electronic Trading

    What was once associated with shouting traders and wild hand gestures has now become more closely associated with statisticians and computer programmers.
  3. Investing

    Inside National Payment Systems

    Investopedia explains: The global interconnection of U.S. payment systems makes commerical and financial transfers possible.
  4. Investing

    What Is The Difference Between Revenue And Income?

    The average person uses revenue and income in interchangeable ways. But these terms refer to very specific, and different, concepts.
  5. Investing

    Understanding Related-Party Transactions

    In business, a related-party transaction refers to a transaction where parties on both sides have a common interest or relationship.
  6. Insights

    The World's Top 10 Hardware Companies (AAPL,IBM)

    Learn more about the companies leading the way in the hardware industry and how some are riding the coattails of giants such as Apple.
  7. Investing

    Arm's Length Transaction

    An arm’s length transaction describes business deals in which the buyer and seller act independently and with no interest in the other’s benefit.
  8. Financial Advisor

    A Day In The Life Of A System Trader

    Systems traders divide their time between trading, developing, backtesting, optimizing and forward testing, to create viable and high-probability trading systems.
  9. Insights

    Bitcoin Transactions Vs. Credit Card Transactions

    We provide an overview of the differences between bitcoin and credit card transactions, and the advantages of using one over the other.
  10. Personal Finance

    What IRS Form 8949 Is For

    Selling a painting or that lake property? Disposing of your fossil fuel stocks? You need to know about this IRS form.
RELATED FAQS
  1. How has the Internet impacted Value-Added Network (VAN) providers?

    Discover how the advent of the Internet has challenged the Value-Added Network, or VAN, model of distributing electronic ... Read Answer >>
  2. Should I buy whole life insurance for my 5-year-old?

    I'm looking into whole life insurance for my son with cash value, locked insurance rate/death benefit, a... Read Answer >>
  3. How does a SEP IRA accumulate money after my employer contributes to it?

    Am I able to add money to my SEP IRA? ... Read Answer >>
  4. How are arm's-length transactions determined by law?

    Determine if transactions are conducted at arm's length by checking if the parties to a contract are independent and transact ... Read Answer >>
  5. What other sectors are most similar to electronics?

    Find out which segments of the economy are similar to the electronics sector and how innovation and technology impact the ... Read Answer >>
  6. What is the electronics sector?

    Learn more about the electronics sector and the challenges and opportunities presented to electronics companies by new and ... Read Answer >>
Hot Definitions
  1. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  2. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  3. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  4. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  5. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center