Last updated: November 4, 2026 · Reviewed by BOLD VAN's EDI team
In This Article
Quick Answer
EDI and APIs both move data between computer systems, but they work differently. EDI exchanges standardized business documents, such as purchase orders and invoices, between companies, often in batches through a VAN. APIs connect applications so they can request and update data in real time. APIs are growing fast, but EDI remains the standard many large trading partners require, so most businesses use both: EDI for trading partner documents and APIs for connecting internal and cloud applications.
As you compare business software, you will see the terms "EDI" and "API" often. With so many acronyms in business technology, it can be hard to tell which does what. At a basic level, both do the same thing: move data from one computer system to another. EDI has been around much longer and is deeply established in B2B trade, while APIs are growing rapidly.
Definition
EDI (Electronic Data Interchange) is the computer-to-computer exchange of business documents between trading partners in a standardized format, such as ANSI X12 or EDIFACT. Common EDI documents include purchase orders (850), invoices (810), advance ship notices (856) and bills of lading.
EDI was created to replace paper-based business transactions. Instead of people filling out forms and mailing or faxing them, the information is entered or generated in a system and sent securely to trading partners anywhere in the world.
For decades, EDI has been the standard for exchanging business documents in retail, manufacturing, logistics, health care and many other industries. Major companies such as Walmart and Caterpillar require their suppliers to be EDI capable, and the time and cost savings EDI provides have made it common around the world.
Definition
API (Application Programming Interface) is a set of rules that lets one software application request data or actions from another. APIs let applications share data and stay in sync in real time. Unlike EDI, APIs aren't one shared standard; each software provider defines its own API.
You use APIs every day. When a website lets you sign in with your Google account, it uses Google's API to securely confirm your identity and pull basic profile details. The API acts as a go-between, so a change in one application can be reflected in another almost immediately.
APIs have made mobile apps and modern business software far more capable. Many companies build software as an extension of an existing platform using its API. Major B2B platforms such as Salesforce have entire ecosystems of supporting apps built around their APIs.
| EDI | API | |
|---|---|---|
| What it exchanges | Complete business documents (orders, invoices, ship notices) | Specific data or actions (a record, a status, a price) |
| Format | Shared industry standards such as X12 and EDIFACT | Defined by each provider, often JSON or XML |
| Timing | Often batch, though it can be near real time | Typically real time, request by request |
| Typical use | B2B transactions between trading partners | Connecting applications, websites and cloud platforms |
| Onboarding a partner | Map to the partner's EDI requirements once, then reuse the standard | Build to each provider's specific API |
| Adoption | Required by many large retailers, manufacturers and carriers | Growing quickly, especially in e-commerce and SaaS |
| Age | Decades of established use | Widespread more recently, with rapid growth |
Some people expect APIs to replace EDI entirely. So far, that hasn't happened, and EDI's long history is part of the reason. Like email, EDI has lasted because it is simple, it works and a huge infrastructure already supports it. Several factors keep it in place:
EDI hasn't stood still, either. Cloud technology has made EDI easier to adopt and manage, and EDI is now often transmitted over modern internet protocols such as AS2, SFTP and HTTPS.
For most businesses, the question isn't EDI or API but how to use both. A common setup looks like this:
If your trading partners require EDI, you need EDI. If you want your systems to stay in sync automatically, you will likely also use APIs or other integrations to connect EDI with your ERP and other applications.
BOLD VAN offers EDI options for every stage, all on the same network:
2026 Free Mapping Event
New to EDI or moving from another provider? Through Dec. 31, 2026, we build and maintain the maps for the trading partners you move to BOLD Integration, at no mapping cost.
Speak with an EDI solutions specialist about the right setup for your trading partners and systems. Call (844) 265-3777 or email info@boldvan.com.
Talk to an EDI ExpertEDI exchanges standardized business documents between companies, often in batches. APIs let applications request and update specific data in real time. EDI uses shared standards like X12; each API is defined by its provider.
Not so far. APIs are growing quickly, but many large trading partners still require EDI, and its shared standards and established networks make it efficient for B2B document exchange. Most businesses use both.
Yes. A common setup uses EDI to exchange documents with trading partners and APIs or other integrations to move that data into and out of a company's ERP and other systems.
APIs typically work in real time, request by request. EDI is often processed in batches, though it can be near real time. For many supply chain processes, EDI's speed is more than sufficient.
If your trading partners require EDI, yes. Many large retailers, manufacturers and carriers require suppliers to exchange documents in EDI formats.
No. EDI uses shared industry standards such as X12 and EDIFACT. APIs are defined by each software provider, so connecting to a new API usually requires building to that provider's specifications.
Key Facts
EDI and APIs both move data between systems. EDI exchanges standardized business documents between trading partners using shared standards like X12 and EDIFACT, often in batches. APIs connect applications to request and update specific data in real time, and each is defined by its provider.
APIs haven't replaced EDI, because many large trading partners require EDI and its shared standards and established networks make B2B exchange efficient. Most businesses use both: EDI with trading partners and APIs or integrations to connect EDI with their ERP. According to BOLD VAN, it offers web EDI, cloud mapping, managed ERP integration and transmission-only options on one network.
