electronic data interchange (EDI)

Process by which understandable data items are sent back and forth via computer linkages between two or more entities that function alternatively as sender and receiver. Common examples for medical billing that use the X12 format are insurance claims, quality assurance reviews, utilization data, and certifications. See also Accredited Standards Committee X12 (ASC X12) .

Electronic Fund Transfer Act (EFTA)

Federal regulation that limits the consumers’ liability if there has been an unauthorized use of an automatic teller machine (ATM) card, debit card, or other electronic banking device. Consumers are only covered by a $50 liability limit if they notify their financial institution within 2 business days of discovering a problem of unauthorized use of their debit card. If notification is delayed, the liability can jump to $500.