What is an 822 file?
An 822 file is an EDI (Electronic Data Interchange) transmission of a bank account statement; account balances, service activity, charges, service fees, applicable rates, adjustments, etc. Also included is basic information such as the bank itself, its routing and transit number, the company/account holder, account names, account numbers, classification of account levels and various service and charge classifications. The vast majority of bank account holders receive a paper and/or EDI 822 file monthly.
Which financial institutions can produce an 822 file?
Most of the big banks can produce an 822 file and a couple does so very well as far as adhering to the standard format.
A common misconception is that the 822 file shall always match the paper statement. In theory, the same data should be translated from common layman's terms and dollar amounts found on the paper statement to an EDI format without altering the data itself. In the event this does not happen, it is likely the EDI language is not understood and/or its format was not followed.
EDI is a terminology/format that is not as common as I'd originally thought. For example, if they place the word "CREDIT" in any segment on the 822 file it will not read as "CREDIT" in EDI terminology. To communicate successfully, those responsible for the construction of the EDI 822 file must be fluent in the EDI 822 terminology and standard.
Without a good understanding, your file may be called an 822 but it's really just an alphanumeric file with special characters that Person A believes translates into something that Person B cannot comprehend.
Happy Analyzing!
