Value-Added Network (VAN)
A value-added network (VAN) is a private, managed network that routes EDI documents between trading partners like a digital post office. The sender drops a file in their VAN mailbox and the VAN delivers it to the receiver's mailbox. VANs charge per document or per character, which is why high-volume traders look at alternatives like AS2.
How a VAN works
A VAN uses a mailbox model. Each company connects once to the VAN, which handles delivery, addressing, retries, and the audit trail. VANs interconnect with each other so a sender on one VAN can reach a receiver on another, much like email providers exchanging mail.
VAN versus a direct connection
A VAN is simple to set up but charges ongoing per-document or per-kilocharacter fees that scale with volume. AS2 is a direct internet connection with no per-document fee, but you manage the connection and certificates yourself. Many programs run a mix of both depending on what each partner supports.
How VAN onboarding works
Onboarding runs in a predictable sequence. You sign with a VAN and are issued a mailbox plus an interchange ID and qualifier pair, which becomes your address on the network. You give that pair to each trading partner, and they add it to their routing table. The VAN sets up interconnects to whichever other VANs your partners sit on. You then run test transmissions with each partner, usually a document and its acknowledgment, and the partner signs off. Only then does the partner switch you to production. The VAN side takes days; the partner testing queue is what actually sets the timeline, and with large retailers that can run weeks.
What is a VAN ID?
A VAN ID is the address other companies use to route documents to you, and it is always a pair: a qualifier and an identifier. The qualifier says what kind of ID it is, and the identifier is the value. Common qualifiers are 01 for a Duns Number, 12 for a phone number, 08 for a UCC EDI Communications ID, and ZZ for a mutually defined value. The pair appears in ISA05 and ISA06 for the sender and ISA07 and ISA08 for the receiver. A mismatch on either half is one of the most common reasons a file is accepted by the VAN and then never reaches the partner.
Single VAN vs multiple VANs
Running one VAN keeps billing, support, and the audit trail in one place, and it is the right default for most programs. Multiple VANs appear for three reasons: an acquisition brings its own contract, a specific partner mandates a specific VAN, or a company wants a second path for resilience. The costs of running several are real, since reconciling documents across two audit trails during an incident is genuinely painful and you lose volume leverage on pricing. The usual enterprise pattern is a single primary VAN plus direct AS2 connections to the highest-volume partners, rather than a second VAN.
VAN pricing: kilocharacters, mailbox fees, and per-document costs
VAN billing usually combines three things. A monthly mailbox fee covers the connection itself. A usage charge is levied either per document or per kilocharacter, which is per thousand characters transmitted. Interconnect fees apply when your document crosses to a partner on a different VAN, and they are charged on top. The kilocharacter model is the one that surprises people, because a large 856 with carton-level detail can cost many times what a short 850 costs. Setup and per-partner mapping charges are typically quoted separately. When comparing a VAN against AS2 or a managed service, model your actual document mix rather than a document count, or the estimate will be wrong in the expensive direction.
Related Terms
Related Resources
Frequently Asked Questions
A VAN, or value-added network, is a private network that routes EDI files between trading partners using a mailbox model, handling delivery, tracking, and the audit trail.
Not always. AS2 and SFTP let partners connect directly without a VAN, but some trading partners still require or prefer a VAN, so many companies use both.
A VAN ID is your routing address on the network, expressed as a qualifier and identifier pair. The qualifier says what kind of ID it is, for example 01 for a Duns Number or ZZ for a mutually defined value, and the identifier is the value itself. The pair sits in ISA05 and ISA06 for the sender and ISA07 and ISA08 for the receiver.
You sign with a VAN, receive a mailbox and an interchange ID and qualifier pair, and give that pair to each trading partner so they can route to you. The VAN arranges interconnects to other VANs as needed. You then run test transmissions with each partner and they approve you for production. The partner testing queue, not the VAN setup, is usually what determines how long it takes.
VANs bill a monthly mailbox fee plus usage, charged either per document or per kilocharacter, with interconnect fees when documents cross to another VAN. Managed service providers bundle the network with mapping and support and usually price per partner and per document. Because kilocharacter billing scales with document size, model your real document mix rather than a document count when comparing options.
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