An EDI payment is a type of electronic payment that uses a standardized format for businesses to exchange payment data computer-to-computer. EDI stands for "electronic data interchange," and it is not actually a payment according to NACHA, the electronic payment association. EDI payments are used to exchange financial transactions between businesses, such as invoices, purchase orders, and remittance advice, in a standardized and structured format. The payment itself is transmitted through some sort of EFT instead of using a paper check, and the data that goes with the payment is captured and transmitted electronically, using EDI, instead of using paper. EDI payments can be used for a variety of purposes, including paying invoices, making employee payroll payments, and settling accounts between businesses. Some benefits of EDI payments include streamlining the exchange of financial payments with automated and streamlined electronic transactions, reducing the risk of errors or fraud, and improving the accuracy of financial data. EDI payments are faster, more efficient, and more secure than manual processes, which require significant time and effort, involving physical paperwork, manual data entry, and risk of human error.