The Electronic Data Interchange (EDI) is the exchange of standardized documents between computer systems for business use. The objective of this study is to make Electronic Data Interchange secure to use and to eliminate human intervention in the transfer of data between business partners so that productivity and efficiency can be improved and also promote its usage between two or more trading organizations. This paper provides an overview of EDI by describing the traditional problems of exchanging information in business environments and how the EDI solves those problems and gives benefits to the company that makes use of EDI. This paper also introduces the common EDI Standards and explains how it works, how it is used over the internet and the security measures implemented. The system was executed on both local area network and wide area network after a critical study of the existing EDI methods and also implemented using VB.Net programming language. Finally, an interactive program was developed that handles the transfer of files, with special attention to the security of the items that are being transferred from one computer workstation to another.