EDI means Electronic Data Interchange.
When electronic claims are sent out to insurance carriers, it uses the clearinghouse system, which works like the post office. For example, when you are having a party, you can handle invitations house by house, or you can drop all invitations to the post office.
We can do the same with the claim, going insurance by insurance, or taking it all to the clearinghouse and allowing it to distribute. Some insurance carriers require pre-registration of the electronic data before they can accept a claim.
Every claim submitted electronically has a confirmation of the recipient as received or rejected.