820 X12 – Payroll Deducted and Other Payment For Insurance Products
The Payment Order/Remittance Advice Transaction Set (820) is a specific transaction set defined within the X12 EDI (Electronic Data Interchange) standards. It is used for transmitting payment orders and remittance advice between trading partners, typically between a payer (such as a healthcare insurer or a company) and a payee (such as a healthcare provider or a vendor).
Here’s a breakdown of what each component means:
- Payment Order: This part of the transaction set refers to the instructions for transferring funds from one entity to another. It typically includes details such as the payer’s bank account information, the amount to be paid, payment due dates, and any special instructions for the payment.
- Remittance Advice: This part of the transaction set provides information about payments made. It includes details about the invoices being paid, such as invoice numbers, amounts paid for each invoice, adjustments, deductions, and any other relevant information related to the payment.
The 820 transaction set allows for the electronic exchange of payment orders and remittance advice, streamlining the payment process between trading partners and reducing the need for manual processing of payments and related documents. It is widely used in various industries, including healthcare, insurance, and finance, to facilitate efficient and accurate payment transactions.
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