Interchange

AAA

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.

INVESTOPEDIA EXPLAINS '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. Value-Added Network (VAN)

    A private network provider hired by a company to facilitate electronic ...
  2. Electronic Commerce - ecommerce

    A type of business model, or segment of a larger business model, ...
  3. Electronic Bill Payment & Presentment ...

    A process used by companies to collect payments via the internet, ...
  4. Interchange Rate

    A fee charged by banks that covers the cost of handling and credit ...
  5. Interbank Network for Electronic ...

    Worldwide network that facilitates the transfer of debit and ...
  6. Bank

    A financial institution licensed as a receiver of deposits. There ...
RELATED FAQS
  1. How do notaries reduce asymmetric information risk?

    A notary acts as an intermediary who can help mitigate the problems caused by asymmetric information in economic transactions. ... Read Full Answer >>
  2. What consumer products drive most of the demand for chips produced by semiconductor ...

    Midway through the second decade of the 21st century, nearly all electronic consumer products on the planet contain some ... Read Full Answer >>
  3. How has investing in the Internet sector evolved over time?

    Investing in the Internet sector has become more conservative over time. It reflects a more measured approach that shies ... Read Full Answer >>
  4. How have technical skills shifted over the past century in the workforce?

    Several changes have transformed the skills required of the modern workforce. The influence of technological change has undoubtedly ... Read Full Answer >>
Related Articles
  1. Credit & Loans

    The Evolution Of Banking

    Banks are a part of ancient history. Find out how this system of money management developed into what we know today.
  2. Insurance

    Your First Checking Account

    This owner's manual will show you what to expect from your bank.
  3. Options & Futures

    Choose To Beat The Bank

    From internet banking to credit unions, it's in your power to cut fees and maximize service.
  4. Options & Futures

    Automating Your Bill Payments

    Automation can be a painless (and free) way to remove the stress of bill scheduling from your life - if you do it right.
  5. Trading Systems & Software

    The Global Electronic Stock Market

    The way trading is conducted is changing rapidly as exchanges turn toward automation.
  6. Investing

    The Strong Dollar’s (Real) Toll On Tech Stocks

    A large portion of U.S. technology companies’ sales occur overseas, given the strong international business and consumer demand from many U.S. tech firms.
  7. Stock Analysis

    Google Stock: A Tale of Two Share Classes

    Google stock comes in two different flavors with different rights for shareholders.
  8. Economics

    Tech Startup Momentum Being Generated In Detroit

    Rising from the ashes in the once proud auto-manufacturing City of Detroit is a rapidly emerging tech startup scene that could prove to be its salvation.
  9. Investing

    How & Why Google Glass Failed

    While Google Glass is off the market for now, the invention, which was a shot in the dark, never wanted to save the world – it just wanted to help.
  10. Investing

    Apple or Google: Which is the Better Bet?

    Apple and Google have made many investors rich since the turn of the century. Which is more appealing going forward?

You May Also Like

Hot Definitions
  1. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  4. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  5. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
  6. Rule Of 70

    A way to estimate the number of years it takes for a certain variable to double. The rule of 70 states that in order to estimate ...
Trading Center