What is a VAN?
Last Updated on July 3, 2025 by Tatyana Vandich
EDI Communication and VANs
What is a VAN ?
A Value Added Network (VAN) is considered the “post office” where business partners can collect and sort EDI documents coming through. As of today, a considerable amount of EDI transactions are still going through VANs, however this number is always in constant decline considering the popularity of the internet, its reduced cost as well as the level of security someone can implement with internet communication protocols. Most of the “major players” in the retail industry, have switched to a point-to-point communication of EDI files and transactions using one or many of the following secured communication protocols for a point-to-point EDI exchange:
FTP (not secured – plain text)
sFTP
Https
AS2
AS3
telnet
“bisync modem” to communicate through a value added network (VAN). This is the oldest method of secured communication.
VAN vs Direct EDI Communication
| Communication Method | Description | Security | Cost | Usage Today |
|---|---|---|---|---|
| VAN | 3rd-party network that stores, routes and manages EDI messages | High (managed by provider) | High | Declining, but still used in government, healthcare, and legacy systems |
| FTP | Basic file transfer (unencrypted) | ❌ Not secure | Low | Not recommended |
| sFTP | Encrypted file transfer | ✅ Secure | Low | Common |
| HTTPS | Secure web communication | ✅ Secure | Low | Popular |
| AS2 | Real-time encrypted transmission over internet | ✅ Very secure | Low | Industry standard |
| AS3 | File-based (FTP-style) but secure and standards-based | ✅ Secure | Low | Less common |
| Bisync modem / Telnet | Legacy dial-up communication methods | Obsolete | High | Rare (legacy systems only) |
Should You Still Use a VAN?
While VANs still serve a purpose — especially in industries like healthcare and government where legacy infrastructure and compliance are key — most businesses now prefer AS2, HTTPS, or sFTP for faster, cheaper, and more flexible data exchange.
If you’re evaluating EDI communication options, consider the following:
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How many partners still require a VAN?
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Do you need full audit trails, data backup, and message tracking?
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Is your team equipped to manage point-to-point protocols like AS2?
At EDI2XML, we support both VAN-based and direct communication, offering our clients flexibility depending on their partners’ requirements and their internal capabilities.
Key Takeaways
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A VAN is a secure intermediary for EDI document exchange but is declining in use.
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Direct communication methods like AS2 and HTTPS are now preferred for cost, speed, and control.
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Businesses often adopt a hybrid model to accommodate different trading partners.
Thank you for sharing this informative article! It’s a concise and clear clarification of what a VAN is and its value in digital information interchange. This will assist readers recognize the idea better. Great job!
Thank you so much for your kind words! I’m glad to hear that you found the article informative and helpful in understanding VAN. If you have any further questions or topics you’d like to explore, feel free to let me know. Keep on learning and exploring!